Income and benefit packaging, sources of support and financial well-being of New York City families

This research uses cost methodology to value the benefits and services that contribute to financial well-being. Data from the 1997 Columbia University Social Indicators Survey is supplemented with government administrative data, surveys, and tax reports to value benefits and supports New York City families receive from government programs, tax code, employers, and family and friends. Cash values are assigned to benefits families receive for health care, housing, food and childcare. The financial impact of the income and benefit package for non-elderly families is analyzed across income and demographic groups to address questions about financial well-being, the equity of the distribution and how families combine benefits with income.; The most surprising fording is that when the total cash and benefit package is considered, the poorest workers lose financial ground. Poor workers receive lower amounts of health care benefits, housing, food assistance and even childcare, than do non-elderly families without workers. They receive few of the tax advantages related to home ownership, health care and childcare that higher earning families receive and are less likely to have employer benefits. Help from family and friends do not go to those who need it most.; Immigrants receive less generous benefit packages than native-born New Yorkers, and there is little difference in the packages received by foreign-born US citizens and those who have not naturalized. Benefits from all sources are well targeted at families with children. Single parents receive a more generous package than do two parent families even when poverty and work status are considered.; The valuing methodology suffers from the weakness that recipients do not always value benefits at their cost. However, it provides a more comprehensive picture of financial well-being than measures that use only cash and near-cash benefits. Equitable distribution and providing desirable incentives for work and family formation are public policy goals. Achievement of these goals requires measurement and evaluation of in kind benefits and services. This will require improvements in data sources and valuing methods.