In 1995, the Cato Institute published a groundbreaking study, The Work vs. Welfare Trade-Off,
which estimated the value of the full package of welfare benefits
available to a typical recipient in each of the 50 states and the
District of Columbia. It found that not only did the value of such
benefits greatly exceed the poverty level but, because welfare benefits
are tax-free, their dollar value was greater than the amount of
take-home income a worker would receive from an entry-level job.
Since then, many welfare programs have undergone significant change, including the 1996 welfare reform legislation that ended the Aid to Families with Dependent Children program and replaced it with the Temporary Assistance to Needy Families program. Accordingly, this paper examines the current welfare system in the same manner as the 1995 paper. Welfare benefits continue to outpace the income that most recipients can expect to earn from an entry-level job, and the balance between welfare and work may actually have grown worse in recent years.
http://www.cato.org/publications/white-paper/work-versus-welfare-trade
Since then, many welfare programs have undergone significant change, including the 1996 welfare reform legislation that ended the Aid to Families with Dependent Children program and replaced it with the Temporary Assistance to Needy Families program. Accordingly, this paper examines the current welfare system in the same manner as the 1995 paper. Welfare benefits continue to outpace the income that most recipients can expect to earn from an entry-level job, and the balance between welfare and work may actually have grown worse in recent years.
http://www.cato.org/publications/white-paper/work-versus-welfare-trade
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