Full Citation
Title: Short-term Labor Responses to Unconditional Cash Transfers
Citation Type: Miscellaneous
Publication Year: 2019
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Abstract: One major criticism of Universal Basic Income (UBI) is that unconditional cash transfers discourage recipients from working. We estimate the causal effects of a universal cash transfer on short-run labor market activity by exploiting the timing and variation of a long-running unconditional and universal transfer: Alaska's Permanent Fund Dividend. We find evidence of both a positive labor demand and negative labor supply response to the transfers. Altogether, a $1,000 increase in the per-person disbursement leads to a 0.2% labor-market contraction on an annual basis, suggesting that concerns over adverse labor market impacts from modest universal transfers may be overstated.
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Authors: Guettabi, Mouhcine; Reimer, Matthew; Bibler, Andrew
Publisher: University of Alaska Anchorage
Data Collections: IPUMS CPS
Topics: Labor Force and Occupational Structure, Other
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