As the costs of basic needs have skyrocketed during this period of rapid inflation, it is worth revisiting the impact of cliff effects on workers in low-wage jobs. The Kentucky Center for Statistics has revamped its Family Resource Simulator, making it easier to use and ensuring it will stay updated and relevant in a changing economy.

Workers in low-wage jobs often do not earn enough to make ends meet. As a result, many workers in low-wage jobs rely on work supports to help them cover the costs of living, such as food, stable housing, healthcare, and childcare. Low-wage workers face trade-offs as they pursue career advancement, because earning more in income can mean losing access to work supports. A new tool shows the net result workers face when they earn more but become ineligible for public assistance programs in the process. These cliff effects might prevent workers in low-wage jobs from taking advantage of career advancement because of a very rational decision- they would ultimately have fewer resources to provide for their family.