Does Work Pay? An Analysis of the Work Incentives under TANF

Research Report

Does Work Pay? An Analysis of the Work Incentives under TANF

Abstract

This analysis finds that working 20 hours per week at minimum wage increases income by an average of 50 percent over cash assistance in the 12 states studied. Public Policy contributes much to making work pay. The interaction of programs such as the Earned Income Tax Credit, and state decisions on cash benefits, earnings disregards, Food Stamps, access to child care, and health insurance create powerful economic incentives to work.

Cross-Center Initiative

Cross-Center Initiative: 
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