The Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund

Damon Jones and Ioana Marinescu

No 24312, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: How would universal and permanent cash transfers affect the labor market? Since 1982, all Alaskan residents have received a yearly cash dividend from the Alaska Permanent Fund. Using data from the Current Population Survey and a synthetic control method, we show that the dividend had no effect on employment, and increased part-time work by 1.8 percentage points (17%). We calibrate expected micro and macro effects of the cash transfer using prior literature, and find our results to be consistent with cash stimulating the local economy — a general equilibrium effect. We further show that non-tradable sectors have a more positive employment response than tradable sectors. Overall, our results suggest that a universal and permanent cash transfer does not significantly decrease aggregate employment.

JEL-codes: H24 I38 J21 J22 (search for similar items in EconPapers)
Date: 2018-02
New Economics Papers: this item is included in nep-lma
Note: LS PE
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Citations: View citations in EconPapers (47)

Published as Damon Jones & Ioana Marinescu, 2022. "The Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund," American Economic Journal: Economic Policy, vol 14(2), pages 315-340.

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Related works:
Journal Article: The Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund (2022)
Working Paper: The Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund (2019)
Working Paper: The Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund (2018)
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