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Would a Basic Income Guarantee Reduce the Motivation to Work? An Analysis of Labor Responses in 16 Trial Programs

Author

Listed:
  • Gilbert Richard
  • Murphy Nora A.
  • 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)

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.

Suggested Citation

  • Gilbert Richard & Murphy Nora A. & Stepka Allison & Barrett Mark & Worku Dianne, 2018. "Would a Basic Income Guarantee Reduce the Motivation to Work? An Analysis of Labor Responses in 16 Trial Programs," Basic Income Studies, De Gruyter, vol. 13(2), pages 1-12, December.
    • Handle: RePEc:bpj:bistud:v:13:y:2018:i:2:p:12:n:4
    DOI: 10.1515/bis-2018-0011
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    References listed on IDEAS

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