The Shortcomings of a Work-Biased Welfare System

Claudia Macaluso

Richmond Fed Economic Brief, 2021, vol. 21, issue 15

Abstract: The recently passed American Rescue Plan Act has once again brought attention to the U.S. welfare system. This EB provides an overview of the welfare system — including recent changes — and assesses the system's effectiveness in achieving its goals. The brief highlights a "work bias" that is embedded in many U.S. welfare programs and has both intended and unintended effects on the system's ability to combat poverty.

Date: 2021
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