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Stranded by the Safety Net: How to Fix the Benefit Cliff Problem
AEI
2025.12.05
The safety net for low-income families aims to offer temporary and targeted assistance so that, among other things, work-capable individuals and families can achieve their economic goals.

Too often, safety-net design flaws create benefits cliffs that lead people to make financially rational decisions to reject pay raises or opportunities to work more hours.

This report offers a roadmap for policymakers wanting to address benefit cliffs and reduce the associated work disincentives.