benefits cliff
Word Rarity
Uncommon
Frequency: Zipf frequency 4.03 in modern English
26
Scrabble Score
13
Letters
5
Syllables
9
Unique Chars
Meaning
noun
A situation that occurs when a small increase in wages results in a sudden decrease in net income, due to suddenly becoming ineligible for benefits.
Example Sentences
- "There is this issue of the benefits cliffs, where some programs are designed so just a very marginal increase in earnings can result in a loss of a very important benefit."
- "The benefits cliff is a paradox. For employees living in poverty, the real cost of higher minimum wage could be benefits lost and a few dollars gained."
- "A remaining downside with potentially big unintended consequences is the legislated proposal doesn’t yet adjust the spouse income test, excluding many couples where one earner loses their job and leading to a perverse and undesirable "benefit cliff"."