Depressing Wages: Why welfare cuts hurt both the welfare and working poor

Canadian Centre for Policy Alternatives study, Depressing Wages: Why welfare cuts hurt both the welfare and working poor, examines the impact of welfare cuts in the mid-1990s (in PDF), not only on those receiving social assistance, but also on the earnings of low-wage workers. The stated aim of welfare reforms was to move people from the welfare rolls into the paid workforce. This study finds that if welfare reforms are doing what governments claim, however,then they are hurting the very people welfare-reforming politicians purport to honour--the working poor. Low-wage workers find themselves competing for jobs against former welfare recipients.