Benefits Cliffs in the Aggregate: Consequences for Welfare and Business Cycles

Benefits Cliffs in the Aggregate: Consequences for Welfare and Business Cycles

Georgia news, in the news, current events, Georgia happenings, GA happenings

Benefits Cliffs in the Aggregate: Consequences for Welfare and Business Cycles

Benefits cliffs – sudden decreases in public benefits that may occur with a small increase in earnings – may inhibit upward mobility. I study the effect of a multitude of cliffs across the universe of benefit programs in nine southern US states on intensive-margin labor supply and the implications for aggregate fluctuations. Using the American Community Survey and proprietary data from the Georgia Center for Opportunity covering nine southern US states, I leverage geographic and household-structure variation to find that, in aggregate, individuals in households approaching benefits cliffs reduce their working hours by about 40 hours annually. I then build a dynamic stochastic general equilibrium model that matches this result, where a key assumption of inframarginal households allows me to accurately capture the benefits cliffs of the US tax and transfer system. I find the aggregate implications of benefits cliffs on output are small, but welfare gains from their elimination are large and concentrated. In a counterfactual model that smooths over benefit cliffs, output increases about 1.6% more on impact in response to an aggregate productivity shock compared to the baseline model with benefits cliffs, but the welfare gain to formally-constrained households doubles.

 

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Benefits Cliffs in the Aggregate: Consequences for Welfare and Business Cycles

Opinion: New Missouri law will help residents escape safety-net cliffs

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Opinion: New Missouri law will help residents escape safety-net cliffs

Missouri lawmakers took an important step forward for working-class and impoverished residents this year by enacting Senate Bill 82. This new law will help more Missourians escape from an entrapping safety-net system and experience the dignity and opportunity of work.

On paper, our safety-net programs in Missouri are intended to help people avoid abject poverty and meet their basic needs. These programs should be temporary whenever possible and encourage work and independence, because ultimately what we want for people is stability and mobility. The sad reality, however, is that many of the programs include a hidden time bomb that threatens the very individuals they are intended to help.

For those receiving safety-net benefits — especially SNAP, child care assistance, and Medicaid — there can be a sudden, steep loss of government assistance as a worker’s income increases. This often results in a loss in benefits that far exceeds the additional pay from a raise a worker receives. These unintended consequences of the benefits cliff can be devastating, trapping individuals and families in a perpetual cycle of poverty. It is high time we address this issue and strive for a more sustainable and supportive system.

Benefits Cliffs in the Aggregate: Consequences for Welfare and Business Cycles

Group offers recommendations to address Atlanta’s spike in violent crime

Georgia news, in the news, current events, Georgia happenings, GA happenings

Group offers recommendations to address Atlanta’s spike in violent crime

A Georgia public policy group has released a report offering suggestions on mitigating Atlanta’s uptick in violent crime.

The Georgia Center for Opportunity suggests the city focus on disrepair by expanding cleanup efforts, addressing abandoned buildings and installing adequate street lighting. It also recommended city officials build trust between residents, law enforcement and social services.

Other recommendations include implementing gang-enhancement provisions, requiring pre-entry cognitive behavioral therapy services for juvenile offenders and using a third party to examine reentry programs.

“The brief and its recommendations are designed to create a base level of what order and public safety should look like across the board,” Josh Crawford, director of criminal justice initiatives at GCO, said in an announcement. “It’s imperative that we have an intentional conversation about the state of crime in Atlanta now, and how we can improve that for the future.”

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Benefits Cliffs in the Aggregate: Consequences for Welfare and Business Cycles

The Shelley Wynter Show Special guest Josh Crawford

Georgia news, in the news, current events, Georgia happenings, GA happenings

The Shelley Wynter Show Special guest Josh Crawford

Listen to the Shelley Wynter Show, September 18, 2023, for a thought-provoking and crucial discussion on the pressing issue of rising crime in our cities, public safety, and effective public policy solutions. We are thrilled to have our own Josh Crawford as a special guest, bringing his expertise and insights to the forefront. Josh Crawford is a renowned expert in criminal justice and public policy, and his expertise will shed light on the strategies we need to implement to address these critical concerns.

*Josh’s interview begins at 19:03. 

Lilly grant will bring the Parents First Initiative to Lawrenceville, enabling families to thrive

Lilly grant will bring the Parents First Initiative to Lawrenceville, enabling families to thrive

Georgia Center For Opportunity Press Release, current events, news, top stories

Lilly grant will bring the Parents First Initiative to Lawrenceville, enabling families to thrive

Lawrenceville, Ga. – Lilly Endowment Inc. has awarded an endowment grant to Lawrenceville First United Methodist Church. The grant will enable the church to facilitate the Raising Highly Capable Kids parenting program — called the Parents First Initiative — across the Lawrenceville community.

The Parents First Initiative is a unique partnership designed to empower parents to equip their kids for life. By leveraging the Raising Highly Capable Kids program, the initiative will help parents develop the skills they need while building the meaningful relationships that weave a community together.

“We are thrilled for the opportunity to work alongside Lawrenceville First United Methodist to make this curriculum available to more Georgia families,” said Joyce Mayberry, vice president of family at GCO. “The endowment will help this critical curriculum continue to thrive. Beyond resilient kids, we’re focused on building resilient communities. This grant will help us make a bigger difference in the lives of families across the state.”

“We need a village to raise kids today and we want to help build that village together,” said Rev. Dr. Adam Hilderbrandt of Lawrenceville First United Methodist Church. “Raising Highly Capable Kids’ 13-week course will give footings to build this village and the connections made will allow the village to grow from there.”

The Raising Highly Capable Kids program empowers adults to become stronger parents with healthier families. Its 13-week-long, evidence-based curriculum gives adults the tools and skills they need to confidently raise children who are caring, responsible, and healthy. 

Raising Highly Capable Kids is presented by the Georgia Center for Opportunity, in partnership with Rezilient Kids. It’s currently being offered to adults in communities across Georgia. 

The objective of Raising Highly Capable Kids is to help kids have healthier outcomes across all areas of their lives, including family life, academics, mental health, social wellbeing, and their eventual careers. By focusing on the family unit and the whole child, the program improves parent-child communication, strengthens bonds, and helps kids to avoid risky behaviors.

“We’re opening lines of communication between parents and students and improving academic outcomes,” Mayberry said. “And, we’re helping parents to see their strengths in parenting, equipping them with the right tools and resources to be successful.” 

The program also connects parents to one another, creating a stronger community as parents learn how to create healthier, more effective environments for their children. According to Mayberry, it’s critically important for parents to understand that they’re not alone, and they have support along the journey. 

One of the program’s most unique aspects is its focus on where parents excel in their roles as they raise their kids. 

“We’re here to support them and identify their strengths,” Mayberry said. 

According to Mayberry, this program isn’t just about improving parenting skills and kids’ outcomes in the here and now. It’s about facilitating change across entire communities and carrying those changes into the future for generations to come. 

“Through Raising Highly Capable Kids, we’re going to change the trajectory of families,” said Mayberry. “We’ll change the parents’ lives and the kids’ in turn. It’s all about generational transformation.” 

The bottom line is that communities need more programs like the Parents First Initiative. Raising Highly Capable Kids depends on community organizations, churches, and schools to get involved and help to facilitate its curriculum in local communities. From volunteer teachers to organizations that incentivize parents to complete their classes, there are many ways to get involved.

If you or your organization would like to help with Raising Highly Capable Kids, we’re looking for leaders in: 

    • School environments who can provide parents in their communities with the tools they need to help their kids succeed in academics
    • Churches who are willing to offer courses locally
    • Nonprofit organizations who are willing to host local classes 

There is also an ongoing need for volunteers to teach the courses wherever they’re made available.

Want to get involved? Get in touch with Joyce Mayberry at joycem@foropportunity.org.