Discussion Paper
From Barrier to Bridge: Approaches to Address Benefits Cliffs
Abstract: Working families can experience a variety of financial barriers that limit economic mobility. One significant barrier occurs when career advancement puts a family above the income-eligibility threshold for public assistance programs. Career advancement, and the wage gains that come with it, can create a scenario in which a family is financially worse off due to the partial or complete loss of benefits–a phenomenon known as a benefits cliff. In other instances, the loss of benefits may largely erase (but not entirely offset) the financial gains associated with career advancement, a dynamic known as a benefits plateau. Both situations can curtail economic mobility.
https://doi.org/10.29338/wc2026-03
Access Documents
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Atlanta
Part of Series: Workforce Currents
Publication Date: 2026-08-04
Number: 2026-3