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Discussion Paper
From Barrier to Bridge: Approaches to Address Benefits Cliffs
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 ...