The hidden costs of welfare cuts
As governments around the world face pressure to reduce public spending, researchers are looking into how welfare cuts affect low-income households' employment, personal finances, and consumption. Jim Goldman, Assistant Professor of Finance at McGill University, and Manuel Adelino, Professor of Finance at Duke University, show that these cuts can trigger a self-reinforcing cycle for financially fragile households. The mechanism behind it has implications well beyond this specific reform.
3 Mar 2026
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