Strengthening the American Dream: Addressing Benefits Cliffs to Empower Safety Net Participants to Pursue Work and Opportunity

There are impoverished families who are discouraged from pursuing upward mobility through work, reacting to what they perceive as perverse incentives woven into the government safety net – or “benefit cliffs.” This Sutherland Institute report evaluates the economic decision-making of safety net participants based on their understanding of the programs they use. The report answers these questions: 

1. Are Utahns who participate in government assistance programs changing their economic behavior in response to benefits cliffs, and if so, what actions are they taking regarding work/earned income?
2. Which government assistance programs are these Utahns most concerned with losing? In other words, which benefits are they trying to preserve?
3. What is the level of awareness of alternatives to government assistance programs in the event of a program participant losing a given benefit?