The Family Income Study's December 1993 issue brief, At What Hourly Wage Are Women Able to
Leave and Stay Off Welfare? found a "threshold" wage of $6.50 per hour enabled many women to
leave and stay off welfare for at least 36 months during the 1988-1992 Study period.
This paper updates that analysis and reports the 1994 equivalent "threshold" wage using two different
methods: 1. Wages earned during the Study period were adjusted for inflation, using the Consumer
Price Index. 2. Wages earned during the Study period were increased by the amount that would
offset the increase in value, from 1988 to 1994, of the welfare package (Aid for Families With
Dependent Children [AFDC] and Food Stamps).