Outlining the Disincentives and Opportunity Costs for Working Mothers

By December 28, 2018Public Policy Analysis
Disincentives and Opportunity Costs for Working Mothers

How could getting a raise put a family’s financial well-being in trouble? In Hamilton County, nearly 145,000 residents struggle to improve their family’s financial situation. However, single mothers face an even greater challenge to achieving self-sufficiency. In conjunction with the Women’s Fund of Greater Cincinnati, the Economics Center analyzed various disincentives to wage growth and opportunity costs for working mothers through income cliff effects. Cliff effects occur when an increase in wages leads to a disproportionate loss in public assistance dollars. Findings indicate significant disincentives for economic or occupational advancement for single mothers earning below $20 per hour in Hamilton County.

To access the findings, go here.