Negative Income Tax Trial

Trial statusRecruiting
Trial phaseNot applicable
Trial typeInterventional
Biological sexAll
Age18+
SponsorUniversity of Pennsylvania

About this trial

In partnership with a local community college in in Omaha, Nebraska, the Center for Guaranteed Income Research (CGIR) at the University of Pennsylvania will conduct a randomized controlled trial to determine the impacts of a negative income tax for MCC students, with particular attention to educational and career advancement outcomes. The sample will include students in a degree-seeking program, as well as those in non-degree programs, such as those working towards professional certificates.

Eligibility criteria

This trial does not accept healthy volunteers

Qualifiers

19 years of age or older, and

Currently in 2nd semester of MCC Associate's program OR completed at least one Level-1 credential OR within one month of completing a Level 2 credential, and

Have a total adjusted gross income (AGI) $6,000 below the SPM for the reported family size, and

Compliant with community college's enrollment, participation, and documentation requirements

Disqualifiers

None

Trial design

Design model

Parallel

Treatments tested in this trial

  • Negative Income Tax

    Other intervention

    Negative income tax calculated by the supplemental poverty measures less the household's prior tax year adjusted gross income, then divided by 12 to arrive at a monthly cash transfer

  • Control

    Other intervention

    No negative income tax payment

Treatment groups

750 Participants
are divided into 3 treatment groups
Group A: Associate's Degree Seekers with NITExperimental treatment 1 intervention
Group B: Credential Seekers with NITExperimental treatment 1 intervention
Group C: ControlActive comparator 1 intervention

Trial outcomes

Primary outcomes

1

Educational Program Completion

Number of participants who complete academic program, whether Associate's Degree or credential

Time frame
Baseline, 6 months, 12 months, 18 months, 24 months, 30 months, 36 months, 42 months
2

Workforce participation

Number of participants who become employed in industry associated with earned degree or credential

Time frame
Baseline, 6 months, 12 months, 18 months, 24 months, 30 months, 36 months, 42 months

Secondary outcomes

1

Housing status

Number of participants who report a change in housing status (e.g., renter, homeowner, rent-to-own, etc.) or report stable housing status in the prior month.

Time frame
Baseline, 6 months, 12 months, 18 months, 24 months, 30 months, 36 months, 42 months
2

Food security (Household Food Insecurity Access Scale)

9 items to assess past four week food insecurity: 1) worry about not having enough food, 2) inability to eat preferred foods, 3) eating a limited variety of foods, 4) having to eat foods that they did not want to eat, 5) eating a smaller meal than needed, 6) eating fewer meals in a day, 7) having no food to eat, 8) going to sleep at night hungry, and 9) going a whole day and night without eating. Items scored as "yes" (1) or "no" (0).

Time frame
Baseline, 6 months, 12 months, 18 months, 24 months, 30 months, 36 months, 42 months
3

Financial wellbeing (Consumer Financial Protection Bureau Financial Wellbeing Scale)

Each item is scored 0 to 4 and summed to a total. The sum total is then converted to a total response value on the CFPB Financial Well-Being Scale score from 0-100, where higher scores indicate a greater sense of financial well-being.

Time frame
Baseline, 6 months, 12 months, 18 months, 24 months, 30 months, 36 months, 42 months
4

Psychological distress (Kessler 6)

Each item is scored from zero "none of the time" to four "all of the time." Scores of the 6 items are then summed, yielding a minimum score of 0 and a maximum score of 24. Low scores indicate low levels of psychological distress and high scores indicate high levels of psychological distress.

Time frame
Baseline, 6 months, 12 months, 18 months, 24 months, 30 months, 36 months, 42 months

Other outcomes

Sponsors and contacts

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