Jane works part-time and earns $11,000 per year. Because she is below the poverty line, she also receives $4,000 in various welfare benefits. Suppose she is offered a new job that would pay her $14,000 and would bring her earnings high enough so that she no longer qualified for any welfare benefits. This is what is known as a notch. Explain what is happening with Jane and how could we modify the system to eliminate the notch.

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The Answer of Jane works part-time and earns $11,000 per year. Because she is below the poverty line, she also receives $4,000 in various welfare benefits. Suppose she is offered a new job that would pay her $14,000 and would bring her earnings high enough so that she no longer qualified for any welfare benefits. This is what is known as a notch. Explain what is happening with Jane and how could we modify the system to eliminate the notch.

Jane Works Part-Time and Earns $11,000 Per Year