It Pays to Be on Welfare in California. Not So Much in Texas

I recently ran across this chart which shows how employment is growing in Texas versus California  since the 2007-08 recession.



There are a number of reasons why this is happening, but consider just this one. Not working pays much better in California than it does in Texas.

In California, you would have to earn $35,000 in salary to be better off than collecting all the welfare benefits available to you (TANF, SNAP, Medicaid, WIC, TFAP etc.). In Texas that threshold is only $18,000. Half the California rate. 

Like everyone else, those on welfare respond to incentives, and the incentives to stay on welfare rather than work are much higher in California than they are in Texas.