why benefit cliff matters
in the united states, individuals and families are often required to verify their need for public benefits through means-tests, typically through verification of income. the benefit cliff is a significant issue in both philadelphia and across the u.s., where low-income families risk losing critical support, such as tanf, snap, or childcare subsidies, as their earnings increase. often, a small raise in income can lead to a sharp drop-off in benefits, leaving families worse off than before, despite working harder or earning more.
according to the 2022 american community service 1 year estimates, over 198,000 households received cash through public assistance or snap in philadelphia county. programs such as tanf are aimed at assisting individuals with low income through social services, however eligibility requirements and benefit amounts often present challenges for those who are eligible to enroll. individuals may become ineligible with increases in income or changes in occupations and lose access to these needed programs.
utilizing a combination of our generalized benefit cliff model and census microdata from ipums usa, we analyzed the presence of households that have incomes near the benefit cliff. we conclude with a discussion on the limitations of this research, and proposals for future analysis.
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