Guaranteed Income Works: Data from Paterson, NJ

PATERSON GUARANTEED INCOME PROGRAM

Mayors for Guaranteed Income and the Office of Mayor Andre Sayegh welcome the release of independent data on the Paterson Guaranteed Income Program, showcasing significant improvements in financial stability, increased savings, and reduced stress for participants. 

The pilot, administered by the City of Paterson, provided a monthly payment of $400 to 110 city residents from June 2021 to June 2022. To qualify, recipients had to be 18 years of age and older, with an annual income below $30,000 for a single person or below $88,000 for a family. Researchers from the University of Pennsylvania collaborated with Paterson to set up a control group and analyze data from the pilot.

Key Takeaways

    • Pilot participants increased their financial stability. While the control group’s ability to cover a $400 emergency sharply declined, guaranteed income recipients not only maintained their ability, over 15% saved more than $500 by the 12-month mark.

    • There were shifts in employment patterns within the treatment group, with a rise in gig work and self-employment. Recipients increased their income significantly, from an average of $16,604 at the start to $24,810 six months after the pilot ended, compared to the control group's $19,078.

    • Participants found a balance between paid work and caregiving responsibilities, showcasing the program's support in fostering work-life balance.

  • The cost burden of housing was reduced for the treatment group, and their home quality perceptions improved. The program empowered individuals to make positive changes in their living spaces, from small improvements to significant investments.

  • The study showed mental health improvements, with recipients experiencing a significant decrease in distress levels and chaos that continued six months after the program ended.

  • Beyond individual impact, the program strengthened social ties within the community. Participants engaged in community work, shared resources, and considered the program a valuable asset in fostering a sense of belonging.

The Paterson Guaranteed Income program demonstrated its potential to bring about transformative change in the lives of participants, addressing financial instability, mental health challenges, and fostering community connections. As the report concludes, the program stands as a beacon of hope and a model for innovative approaches to addressing socio-economic challenges.