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Working Paper
Work, Poverty, and Social Benefits Over the Past Three Decades
Barrow, Lisa; Schanzenbach, Diane Whitmore; Rivera, Bea (2024-10-10)
Understanding the evolving interactions between employment, social benefits, and families' well-being is key to designing better policies to both protect families and foster economic growth. Employment both overall and among those living in low-income families has been on a downward trajectory across the last three decades. One notable exception is that low-income women with children were increasingly likely to work between 1992 and 1999 in the aftermath of large changes to social safety net programs to provide more incentives and rewards for work. Since then, low-income women with children ...
Working Papers , Paper 24-22

Working Paper
Designing Unemployment Insurance for Developing Countries
Espino, Emilio; Sanchez, Juan M.; Cirelli, Fernando (2020-09-10)
The high incidence of informality in the labor markets of middle-income economies challenges the provision of unemployment protection. We show that, despite informational frictions, introducing an unemployment insurance savings account (UISA) system may provide substantial benefits. This system improves welfare by providing insurance to the unemployed and creating incentives to work in the formal sector. The optimal scheme generates a reduction in unemployment (from 4 to 3 percent), an increase in formality (from 68 to 72 percent), and a rise in total output (by 4 percent). Overall, ...
Working Papers , Paper 2018-006

Working Paper
Social Interventions, Health and Wellbeing: The Long-Term and Intergenerational Effects of a School Construction Program
Mazumder, Bhashkar; Triyana, Margaret; Rosales, Maria Fernanda (2019-10-28)
We analyze the long-run and intergenerational effects of a large-scale school building project (INPRES) that took place in Indonesia between 1974 and 1979. Specifically, we link the geographic rollout of INPRES to longitudinal data from the Indonesian Family Life Survey covering two generations. We find that individuals exposed to the program have better health later in life along multiple measures. We also find that the children of those exposed also experience improved health and educational outcomes and that these effects are generally stronger for maternal exposure than paternal exposure. ...
Working Paper Series , Paper WP-2019-09

Discussion Paper
What Works at Scale? A Framework to Scale Up Workforce Development Programs
Ruder, Alexander (2019-06-01)
Workforce development policymakers have access to a growing catalog of training programs evaluated with rigorous randomized controlled trials. This evidence base identifies programs that work in specific geographic and temporal contexts but may not necessarily work in other contexts or at a scale sufficient to meet regional workforce needs. The author examines a sample of recent randomized controlled trials of workforce development programs and reports to what extent this body of evidence informs policymakers about what works at scale. The author finds that most programs are implemented at a ...
FRB Atlanta Community and Economic Development Discussion Paper , Paper 2019-01

Journal Article
How Does Informal Employment Affect the Design of Unemployment Insurance and Employment Protection?
Espino, Emilio; Sanchez, Juan M. (2015)
The authors use a simple model to study the optimal design of unemployment insurance and employment protection. Workers are risk averse and face the possibility of unemployment. Firms are risk neutral and face random shocks to productivity. Workers can participate in a shadow economy, or informal sector. The model yields several lessons. First, countries should encourage formal employment to address the issue of informal employment. In extreme cases, such encouragement translates into high severance payments and negative payroll taxes. Along these same lines, unemployment payments cannot be ...
Review , Volume 97 , Issue 2

Discussion Paper
Benefits Cliffs and the Financial Incentives for Career Advancement: A Case Study of the Health Care Services Career Pathway
Altig, David E.; Ilin, Elias; Ruder, Alexander; Terry, Ellyn (2020-01-01)
Benefits cliffs, which occur when earnings gains are offset by the loss of public benefits, have long been recognized to create financial disincentives for low-income individuals to earn more income. In this paper, the authors develop a new methodology to study benefits cliffs in the context of career advancement. The authors illustrate the change in net financial resources for an individual pursuing the health care services career pathway from certified nursing assistant (CNA) to licensed practical nurse (LPN) to registered nurse (RN). Accounting for increases in taxes and the loss of public ...
FRB Atlanta Community and Economic Development Discussion Paper , Paper 2020-01

Discussion Paper
Developing Inclusive Communities: Challenges and Opportunities for Mixed-Income Housing
Duckworth, Richard; Carpenter, Ann; Lewis Glover, Renée (2017-06-01)
Over the past decade, housing costs have risen faster than incomes. The need for affordable rental housing has well outpaced the number of available units as well as funding allocations at the federal level. Local regulation and land use policies that increase the cost of subsidized, mixed-income housing construction and preservation have contributed to the affordability problem. {{p}} To meet the affordable housing needs in U.S. communities, innovation, creativity, and "out of the box" thinking may be required, particularly as it relates to reducing the rapidly increasing costs of ...
FRB Atlanta Community and Economic Development Discussion Paper , Paper 2017-1

Working Paper
Social Transfers and Spatial Distortions
Colas, Mark; McDonough, Robert (2021-11-17)
US social transfer programs vary substantially across states, incentivizing households to locate in states with more generous transfer programs. Further, transfer formulas often decrease in income, therefore rewarding low-income households for living in low-paying cities. We quantify these distortions by combining a spatial equilibrium model with a detailed model of transfer programs in the US. The current system leads to locational inefficiency of 4.38% of total transfer spending. A reform that both harmonizes transfer policies across states and indexes household income to local average ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 54

Discussion Paper
Mitigating Benefits Cliffs for Low-Income Families: District of Columbia Career Mobility Action Plan as a Case Study
Ilin, Elias; Sanchez, Alvaro (2023-09-26)
The structure of the United States social safety net features the phaseout of public assistance as household income increases, which functions as an effective marginal tax on wage gains and is commonly referred to as a "benefits cliff." This presents a disincentive for some low-income workers, especially those with children, to accept higher-paying jobs or promotions. Workforce development programs focused on helping low-income workers must contend with the challenges that benefits cliffs present to the career advancement of their clients. In this paper, we describe the overall structure of ...
FRB Atlanta Community and Economic Development Discussion Paper , Paper 2023-01

Working Paper
More Than Shelter: The Eﬀects of Rental Eviction Moratoria on Household Well-Being
An, Xudong; Gabriel, Stuart A.; Tzur-Ilan, Nitzan (2022-04-05)
We investigate the impact of 2020 COVID-19 rental eviction moratoria on household well-being. Analysis of new panel data indicates that eviction moratoria reduced evictions filings and resulted in redirection of scarce household ﬁnancial resources to immediate consumption needs, notably including food and grocery spending. We also ﬁnd that eviction moratoria reduced household food insecurity and mental stress, with larger effects evidenced among African American households. Findings suggest broad salutary effects of eviction moratoria during a period of widespread virus and economic ...
Working Papers , Paper 22-10

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