For the general concept of self-reinforcing mechanisms which maintain poverty, see Poverty trap.
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The welfare trap (or unemployment trap or poverty trap in British English) theory asserts that taxation and welfare systems can jointly contribute to keep people on social insurance because the withdrawal of means-tested benefits that comes with entering low-paid work causes there to be no significant increase in total income. According to this theory, an individual sees that the opportunity cost of getting a better paying job is too great for too little a financial return, and this can create a perverse incentive to not pursue a better paying job.[1]
^Baetjer, Howard (August 24, 2016). "The Welfare Cliff and Why Many Low-Income Workers Will Never Overcome Poverty". Learn Liberty.
The welfaretrap (or unemployment trap or poverty trap in British English) theory asserts that taxation and welfare systems can jointly contribute to...
Association) Welfare economics Welfare reform Welfare rights Welfaretrap Workfare Except in the United States and Canada, where welfare refers only to direct...
to evaluate trap performance and the implementation of improvements in trapping technology in order to improve animal welfare. Trapping is useful to...
their effective income same as the first family. A high EMTR creates a welfaretrap that discourages workers from attempting to advance their careers, improve...
thousands more applications for asylum than it had planned to. The "welfaretrap" theory describes perverse incentives that occur when money earned through...
In psychology, a social trap is a conflict of interest or perverse incentive where individuals or a group of people act to obtain short-term individual...
Theories of poverty Well-being WelfareWelfare culture WelfaretrapWelfare's effect on poverty Criticism of welfare Wellness Quality of life Self-perceived...
satisfy a firm eligibility criterion is often seen as giving rise to the welfaretrap. The level of support provided to the poor by a negative tax is thought...
were "trapped in a cycle of poverty". After the 1994 elections, the Republican-controlled Congress passed two major bills designed to reform welfare, but...
claimants had been granted Incapacity Benefit they were caught in a welfaretrap, where it was not worth coming off the benefit and going to work. In...
employers. Its purposes are to redistribute income, and to obviate the welfaretrap attributed to other forms of relief, thereby reducing unemployment. It...
mobility Theories of poverty Virtuous circle and vicious circle Welfare state WelfaretrapWelfare's effect on poverty Working poor Blundell, Jonathan (2014)...
Wealth inequality in the United States Welfare economics Welfare in California Welfare in Puerto Rico Welfaretrap STANLEY , D. (2023). The Conscience of...
microeconomic techniques to evaluate well-being (welfare) at the aggregate (economy-wide) level. welfaretrap Weller's theorem willingness to accept (WTA)...
The modern welfare state has been criticized on economic and moral grounds from all ends of the political spectrum. Many have argued that the provision...
Welfare culture refers to the behavioral consequences of providing poverty relief (i.e., welfare) to low-income individuals. Welfare is considered a type...
payments. At a October 25, 2001, talk presented at the "Equalization: WelfareTrap or Helping Hand?" conference, the American economist James M. Buchanan...
210 (4): 303. doi:10.1192/bjp.bp.116.187757. S2CID 34824320. "How the "welfaretrap" research championed by Toby Young crumbled under scrutiny". 9 June 2021...
A mousetrap is a specialized type of animal trap designed primarily to catch and, usually, kill mice. Mousetraps are usually set in an indoor location...
Welfaretrap Work for the Dole, an Australian government program. workfare. Dictionary.com. Retrieved: 21 September 2021. Greve, Bent (2020). Welfare...
gives poorer families cash assistance every year. The EITC avoids the welfaretrap by subsidizing income, rather than replacing it. Romania Economics portal...
self-destructing pits. This fatalistic view has wide acceptance among scholars, welfare planners, and voters. At the most prestigious university, the country's...
poor welfare. Ratings form part of the trap approval process. The AIHTS establishes approval and certification standards for all types of traps and requires...
health and education outcomes. Welfare states have an effect on poverty reduction. Currently modern, expansive welfare states that ensure economic opportunity...
subsidies given to the poor households by the system eliminates the welfaretrap issue faced by other proposals (i.e. means-test). The ‘wage subsidy’...
A liquidity trap is a situation, described in Keynesian economics, in which, "after the rate of interest has fallen to a certain level, liquidity preference...
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