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Study: Cash encourages low-income students to perform better

To get low-income teenagers to spend more time on school work, a new study suggests that schools should pay them, the Huffington Post reports. A recent study released by MDRC and co-authored by NYU Steinhardt researchers [1] J. Lawrence Aber and Pamela Morris analyzed how parents and their teenage children were affected by the Opportunity NYC-Family Rewards program [2], a three-year conditional cash transfer program launched by the Center for Economic Opportunity in the Mayor’s Office in 2007. Conditional cash transfer programs offer monetary assistance to low-income families in an effort to reduce short- and long-term poverty while encouraging parents to increasingly invest in their children. The program was offered to families with children in the fourth, seventh or ninth grades in six of the poorest neighborhoods of New York City. It provided a set of 22 different incentives during its first two years [3] and a smaller amount in the third year, ranging in value from $20 to $600. Incentives were tied to three domains: health, education and work…

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