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NPQ: The Economic Case Against Work Requirements

NPQ, February 29, 2024, The Economic Case Against Work Requirements

Work requirements for public benefits programs have roots in the long history of slavery and its afterlife in the United States. But they are not just racist—they are ineffective and bad for the economy. Modern work requirements imposed through welfare reform in 1996 have now been around long enough to bear out what many critics feared: these policies do not increase long-term employment in high-quality jobs, provide stability, or improve economic outcomes. Instead, they harm people who need the support of public benefits programs, increase poverty, and have negative macroeconomic impacts. Ending work requirements would improve the US economy—not hurt it.

Work requirements don’t help people get good jobs or mitigate poverty for marginalized people—especially Black people who already face disproportionate barriers due to structural racism. They also don’t help people gain the necessary education and skills to achieve stable employment. The programs that most successfully improved employment allowed individuals subject to work requirements to improve their education or build their skills. But, of course, education and skill-building support could be offered outside of the context of imposed work requirements.  

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