Cliff Effect of Public Assistance Programs

$15 minimum wage could squeeze workers on public assistance, By Katie Johnson, December 9, 2016, Boston Globe: “If it succeeds, a campaign to raise the Massachusetts minimum wage to $15 an hour could put more money in the pockets of low-income workers and create a path to self-sufficiency. But for some families, the boost in pay could mean a drop of hundreds of dollars a month in government benefits.  Food stamps, child care vouchers, and rent subsidies could be cut before families can afford to cover those expenses on their own, leaving some households, particularly single parents with young children, worse off despite a bigger paycheck — a phenomenon known as the ‘cliff effect…””

Comments are closed.