Understanding Benefits Cliffs Evidence Insights

Benefits cliffs are increasingly recognized as a critical barrier to economic mobility in communities across the country. When a raise, promotion, or new job pushes an individual or family above eligibility thresholds for public benefits, the result can be a net financial loss. This creates difficult choices for workers, employers, and policymakers. As awareness of benefits cliffs grows, so does momentum around research, policy innovation, and community-driven solutions. This Connecting Communities webinar brought together researchers and practitioners to explore the latest evidence on how benefits cliffs affect workforce participation and economic opportunity, highlight promising strategies emerging from innovative pilots, and identify priorities for future research.  During this event, participants learned more about: key research findings on how benefits cliffs affect employment and advancement decisions for workers and job seekers, learnings from innovative pilot programs designed to reduce the impact of benefits cliffs, and  a research agenda that can inform more effective, equitable solutions for policymakers, community-based organizations, and employers.  Related Resources: What Are Benefits Cliffs?: https://www.atlantafed.org/what-we-study/workforce-development/advancing-careers-for-low-income-families/what-are-benefits-cliffs The Research Landscape for Benefits Cliffs: Reviewing the Benefits Cliffs Research: https://www.atlantafed.org/-/media/Project/Atlanta/FRBA/Documents/news/events/2026/02/12/2026-benefits-cliffs-research-convening/conference-recap.pdf Career Ladder Identifier and Financial Forecaster (CLIFF) tool: https://www.atlantafed.org/research-and-data/data/cliff-tool Benefits Cliff Story Series: https://fedcommunities.org/benefits-cliffs/