Study Finds: Universal Basic Income's Results Are Not Positive! 📉

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Summary:

  1. Research Overview
    A working paper from the National Bureau of Economic Research analyzes the employment effects of Universal Basic Income (UBI) by providing $1,000 per month to 1,000 low-income participants over three years.

  2. Decreased Labor Participation
    The study reveals a 2 percentage point decrease in labor market participation among UBI recipients compared to a control group receiving only $50 per month.

  3. Reduced Work Hours
    Participants reported a decrease of 1.3 to 1.4 hours in their weekly work hours, indicating reduced engagement in the labor market.

  4. Leisure Time Increase
    Most of the additional free time was spent on leisure activities, and there were no significant improvements in job quality or investments in human capital.

  5. Overall Findings
    The research concludes that while guaranteed income can reduce labor supply, it does not produce substantial productive benefits for recipients.

Read more at: NBER