The Persistence Of Benefit Cliffs: A Behavioral Look At A Policy Problem

The Persistence Of Benefit Cliffs: A Behavioral Look At A Policy Problem

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The Persistence Of Benefit Cliffs: A Behavioral Look At A Policy Problem – altnews.org

Authored by Vladimir Snurenco via the American Institute for Economic Research (AIER), Benefit cliffs occur when earning slightly more—through a raise

The Persistence Of Benefit Cliffs: A Behavioral Look At A Policy Problem - Nemos News Network

Authored by Vladimir Snurenco via the American Institute for Economic Research (AIER), Benefit cliffs occur when earning slightly more—through a raise or extra hours—leaves people worse off because they lose government benefits. Many economists believe these cliffs can be “smoothed out” through better program design. But this view overlooks a critical factor: human psychology. To truly address benefit cliffs, policymakers must move beyond formul…