Would a Basic Income Guarantee Reduce the Motivation to Work? An Analysis of Labor Responses in 16 Trial Programs
Gilbert Richard (),
Murphy Nora A.,
Stepka Allison,
Barrett Mark and
Worku Dianne
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Gilbert Richard: Psychology, Loyola Marymount University Bellarmine College of Liberal Arts, Los Angeles, CA, USA
Murphy Nora A.: Psychology, Loyola Marymount University Bellarmine College of Liberal Arts, Los Angeles, CA, USA
Stepka Allison: Psychology, Loyola Marymount University Bellarmine College of Liberal Arts, Los Angeles, CA, USA
Barrett Mark: RAND Corp, Santa Monica, CA, USA
Worku Dianne: Psychology and Economics, Loyola Marymount University Bellarmine College of Liberal Arts, Los Angeles, CA, USA
Basic Income Studies, 2018, vol. 13, issue 2, 12
Abstract:
Many opponents of BIG programs believe that receiving guaranteed subsistence income would act as a strong disincentive to work. In contrast, various areas of empirical research in psychology (studies of intrinsic motivation; non-pecuniary benefits of work on social identity and purpose; and reactions to financial windfalls such as lottery winnings) suggest that a BIG would not lead to meaningful reductions in work. To test these competing predictions, a comprehensive review of BIG outcome studies reporting data on adult labor responses was conducted. The results indicate that 93 % of reported outcomes support the prediction of no meaningful work reductions when the criterion for support is set at less than a 5 % decrease in either average hours worked per week or the rate of labor participation. Overall, these results indicate that adult labor responses would show no substantial impact following a BIG intervention.
Keywords: basic income; basic income guarantee; labor outcomes; evaluation studies; pilot programs (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1515/bis-2018-0011
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