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Does Work Pay? A Summary of the Work Incentives under TANF
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This brief focuses on how current state welfare programs, food stamps, the Earned Income Tax Credit (EITC), and tax payments affect a low-income mother’s financial incentives to work and how these incentives vary across 12 states. The central finding is that low-income single mothers are significantly better off working, even at minimum wage, than relying solely on welfare, but they gain little from raising their wage rate from $5.15 to $9 per hour. (Authors)
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A program of the U.S. Department of Health and Human Services Substance Abuse & Mental Health Services Administration, Center for Mental Health Services