As reported in Chapter 4, the NEWWS programs produced increases in employment and earnings for program group members (compared with control group members) over the five-year follow-up period. Table 13.6 shows that the impact on earnings ranged from about $900 (Grand Rapids HCD) to more than $5,000 (Portland) per program group member.
|Component of Analysis||Atlanta LFA ($)||Atlanta HCD ($)||Grand Rapids LFA ($)||Grand Rapids HCD ($)||Riverside LFA ($)||Riverside HCD ($)||Columbus Integrated ($)||Columbus Traditional ($)||Detroit ($)||Portland ($)|
|Social Security taxb||174||141||113||61||182||94||141||98||101||349|
|Federal income tax||9||62||-321||-99||-278||-340||0||-53||59||-258|
|State income tax||77||73||46||33||5||2||27||15||64||175|
|State sales and excise tax||25||20||-21||-19||-5||-44||10||6||19||0|
|SOURCES: MDRC calculations from state unemployment insurance (UI) earnings records and published data on fringe benefits and tax rates.
NOTES: Estimates reflect discounting and adjustment for inflation.
Estimates were regression-adjusted using ordinary least squares, controlling for pre-random assignment characteristics of sample members.
Rounding may cause slight discrepancies in calculating sums and differences.
Tests of statistical significance were not performed.
a These include employer-paid health and life insurance, pension contributions, and workers' compensation. Paid leave is captured directly by the earnings estimate. Employee-paid Social Security and Medicare taxes are included as tax payments.
b Employee portion only.
Fringe benefits employer-provided health and life insurance, pension contributions, and worker's compensation were part of sample members' total compensation from working and thus were included in the benefit-cost analysis.(15) They ranged by region from 13.7 percent (the West) to 15.8 percent (the Midwest) of earnings.(16) Increases from earnings and fringe benefits yielded an average increase in total work-related compensation that ranged from $1,050 per program group member in Grand Rapids HCD to $5,879 per program group member in Portland.(17)