Moving on Up: Helping Families Climb the Economic Ladder by Addressing Benefits Cliffs

The sudden and often unexpected decrease in economic supports that can occur with a small increase in earnings – known as the cliff effect – is a challenge for businesses and working families alike. Often, wage increases result in a net loss of income or only a small overall increase leaving families at risk of falling off the cliff’s edge. This report from the National Conference of State Legislatures shares lessons learned from efforts in New England to address the benefits cliff and offers policy options for addressing worker shortages while improving family outcomes.