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Two Steps Forward and Three Steps Back

“The Cliff Effect”—Colorado’s Curious Penalty for Increased Earnings—A quantitative analysis of work supports in seven Colorado counties

In Colorado, as in other states, a full-time job at low wages is not enough to make ends meet. Federal and state “work supports” assist low-wage workers and their families with benefits such as earned income tax credits, child care subsidies, health care coverage, and food stamps. These benefits are means-tested, so as earnings increase—particularly as they rise above the official poverty level—families begin to lose eligibility even though they are not yet self-sufficient. The result is that parents can work and earn more without their families moving closer to financial security. The cause of this situation lies in the current structure of work support programs, including rapid “phase-out” rates, which lead to what is known as “cliff effects.”

Download the full report | Download the Executive Summary


1 in 5 Colorado households
do not have enough income to make ends meet.

Download "Overlooked and Undercounted: Struggling to Make Ends Meet in Colorado" - the Self Sufficiency Standard Demographic Study, prepared by Colorado Fiscal Policy Institute, funded by Denver Foundation, the Chambers Family Fund, Mile High United Way, and The Women's Foundation of Colorado.
Download the Executive Summary.


The Women's Foundation of Colorado is dedicated to serving the women and girls of Colorado by collecting, compiling, and presenting accurate and timely statistics and research relating to the conditions of economic self-sufficiency in the state.

In 1994, the WFCO commissioned The Status of Women in Colorado report. The report detailed the political, economic, health and demographic status of women throughout our state. It was so well received that the Institute for Women's Policy Research (IWPR), was hired to replicate the report in 2000.

In 2001, we commissioned complementary information with the following gender specific research reports:

  • 2001 - Our Daughters, Our Future tracks girls' progress in key areas affecting economic security, such as girls' healthy development; sexual activity, pregnancy and teen marriage; violence and homelessness; education; economic opportunity and leadership.
  • 2001 - Women in Technology Report takes a closer look at the role women are playing in this vital sector in our economy, detailing the experience, barriers and future of women in technology.

Today, the WFCO is compiling county-specific reports to complement the 12 years of research conducted. These reports will focus on the economic, employment, and education status of women and girls in each county throughout the state. In addition to Federal Census information, the WFCO utilizes IWPR reports as resources.

The intent of these county reports is to provide the information that our constituents need to make informed program decisions, to advocate for women and girls on a local level and to determine the health of women and girls in each of Colorado's 64 counties. Our grantees, beneficiaries, donors and supporters have a right to expect the highest level and quality of service possible and we are fully committed to achieving this high standard.

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