The effect of the so-called welfare cliff is that it discourages welfare recipients from doing the following, except

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The welfare cliff refers to the situation where recipients lose their benefits abruptly when they earn a certain amount of income or when the program is phased out. This abrupt loss of assistance can create a disincentive to work more hours or transition into higher-paying jobs, which could result in a net loss of income due to the loss of benefits. Similarly, acquiring education and training for better jobs could lead to income exceeding the cutoff limit, which could also lead to a loss of benefits. However, the welfare cliff does not discourage recipients from applying for an extension of their benefits.

The Effect of the So-Called Welfare Cliff Is That It