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Slideshow: Benefit Cliffs and Benefit Plateaus

Visualization
May 16, 2017
Slideshow: Benefit Cliffs and Benefit Plateaus

The interplay between higher wages and public benefit eligibility means that low-income workers might not always see higher incomes from working more hours—a phenomenon described here as “benefit cliffs” and “benefit plateaus. To explore this topic, PHI analyzed how the recent increase in hourly wages in New York City—spurred by a 2016 state law that will increase the minimum wage to $15 an hour by the end of 2018—impacts a home care aide’s benefit eligibility and income.

Key Takeaways

Do higher wages always equal higher incomes for New York City’s home care aides?
PHI studied how the minimum wage increase in New York City impacts a home care aide's benefit eligibility and income.
Benefit cliffs and plateaus illustrate how some workers see their incomes go down or stay the same even when their wages increase and they work more hours.
 
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