The Persistence of Benefit Cliffs: A Behavioral Look at a Policy Problem

Authors

Vladimir Snurenco, Calvin UniversityFollow

Document Type

Article

Abstract

Benefit cliffs—where earning slightly more leads to losing more in government support—are often treated as technical glitches fixable through better formulas. But this article argues that the real problem isn't just economic—it's psychological. Drawing on behavioral economics and lived experience, the piece explores how fear, loss aversion, and system complexity keep low-income Americans trapped—even when policy fixes say they should be better off. Until policymakers account for how people actually feel and behave, benefit cliffs will persist not just on paper, but in real life

Publication Date

7-1-2025

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Comments

https://thedailyeconomy.org/article/the-persistence-of-benefit-cliffs-a-behavioral-look-at-a-policy-problem/

Recommended Citation

Snurenco, Vladimir, "The Persistence of Benefit Cliffs: A Behavioral Look at a Policy Problem" (2025). University Faculty Publications and Creative Works. 978.
https://digitalcommons.calvin.edu/calvin_facultypubs/978