Generating Evidence on the Impact of Cash Transfers for Rapid Rehousing Clients

Beginning in early 2023, clients who exit Abode Services’ RRH programs will have the option to participate in a cash transfer program. During the last case manager meeting prior to exit from RRH, the case managers will ask the client if they are interested in participating in a study that provides cash payments of $50 or more for one year.

Those who are randomized into the control group will receive $50 per month for 12 months. The treatment group will receive much larger monthly payments ranging from $800 to $2,000 depending on family type and month. These payments are roughly comparable to the average payment made by Abode’s RRH programs ($1,400) and will on average cover one-half to two-thirds of monthly rent ($2,100). Motivated by feedback from prior Abode RRH clients, the payments will be larger in the initial months than in later months to help with bigger expenses such as car repairs.

2023-02-01

2025-02-01

Homelessness program use
Housing moves
Having a formal address
Neighborhood characteristics

Credit score
Credit delinquencies

Arrests

Earnings
Wage Rate
Employed
Job Exits
Job Starts

Child education

Health care utilization

Following the construction of this study as a randomized control trial, those assigned to treatment and control groups should look equivalent to each other on average. Thus, any difference in outcomes between the groups could be attributed to their treatment status. After applicants have been randomized into these groups and the study begins, LEO will monitor outcomes into the future and compare them. For our analysis, we will estimate differences in outcomes between treatment and control group applicants using an intent-to-treat (ITT) framework controlling for baseline covariates. Baseline covariates will come directly from Abode’s administrative data or from data collected during the study intake process.

Specifically, we will estimate the following equation:
yi=β0 + Tiβ1 + xiβ2 + εi

where yi represents key outcome variables, such as returns to homelessness in the time period of interest, and xi represents a vector of observed characteristics for person i. The variables in x will include baseline characteristics such as age, age squared, categorical race variables, and indicators for ethnicity and gender. The key covariate in the analysis will be the dummy variable Ti which equals 1 if the respondent is assigned to a particular treatment arm and zero if in the respective control group. The term εi is an error term. We will measure the outcomes every year after randomization, determining short- and long-term effects of the intervention. Treatment-on-the-treated (TOT) effects will be estimated via an instrumental variable (IV) model, using assignment to treatment as an instrument for participation in services.

Not available

Computer-based randomization

Family

No

990 families

990 families

495 control families, 495 treatment families

For our analysis, we will estimate differences in outcomes between treatment and control group participants using an intent-to-treat (ITT) framework controlling for baseline covariates. The large sample size (N = 990) is an essential and unique feature of our study. We will be powered to detect a 6.5 percentage point (23 percent) decrease in the probability of becoming homeless 12 months after exit from RRH, assuming an untreated mean of 28 percent. Given the nature of the intervention, we expect take-up to be very high. Since about 4 percent of Abode’s RRH clients receive SSI or SSDI benefits, we conservatively assume that all SSI/SSDI recipients in the treatment group will decline to take up the cash transfers due to the impact on their existing benefits , resulting in a 96 percent take-up rate. With the current flow of clients exiting Abode Services’ RRH programs, we expect to reach a sufficient sample size after approximately two years of enrollment.. Better supporting individuals facing housing instability directly relates to intergenerational mobility and equity. We will explore subgroup heterogeneity across groups defined by baseline characteristics, such as gender, family type (adult-only households versus families with dependents), immigration status, and race and ethnicity.

Abode Pre-Analysis Plan 12.13.22.pdf