The Public Assistance Benefit Cliff and A Study Proposal to Test the Effects of Eligibility Rules on Moving to Self-Sufficiency¶
Virginia Department of Social Services. (2021). The Public Assistance Benefit Cliff and A Study Proposal to Test the Effects of Eligibility Rules on Moving to Self-Sufficiency. Commonwealth of Virginia.
Cited by¶
1 citation across 1 artifact.
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Mechanisms¶
- Sliding Scale Rule
- Its strength is that wherever a hard cutoff creates a benefits cliff — bunching just below a threshold, refusal of raises, gaming of the boundary — a sliding scale removes the discontinuity and with it the perverse incentive.
This sourceDescribes benefit cliffs as sudden losses of assistance that discourage increased earnings and proposes a gradual benefit phase-out in their place.
- Its strength is that wherever a hard cutoff creates a benefits cliff — bunching just below a threshold, refusal of raises, gaming of the boundary — a sliding scale removes the discontinuity and with it the perverse incentive.
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