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Economic Response to a Guaranteed Annual Income: Experience from Canada and the United States

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  • Hum, Derek
  • Simpson, Wayne

Abstract

This article reviews research from the five income-maintenance experiments in Canada and the United States. After sketching the historical and political context of the experiments, the authors compare their designs and discuss some important analytic difficulties. Their primary focus is the work-incentive issue, both nonstructural estimates of the experimental effects and elasticity estimates of structural labor-supply functions. The authors provide initial estimates of nonstructural and structural models for the Canadian experiment. They discuss more briefly some non-work-response findings associated with a guaranteed annual income and offer some personal comments on social experimentation and the policy process. Copyright 1993 by University of Chicago Press.

Suggested Citation

  • Hum, Derek & Simpson, Wayne, 1993. "Economic Response to a Guaranteed Annual Income: Experience from Canada and the United States," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 263-296, January.
    • Handle: RePEc:ucp:jlabec:v:11:y:1993:i:1:p:s263-96
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    Citations

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    Cited by:

    1. Giulia Giupponi, 2019. "When income effects are large: labor supply responses and the value of welfare transfers," CEP Discussion Papers dp1651, Centre for Economic Performance, LSE.
    2. Levasseur Karine & Paterson Stephanie & Carvalho Moreira Nathalia, 2018. "Conditional and Unconditional Cash Transfers: Implications for Gender," Basic Income Studies, De Gruyter, vol. 13(1), pages 1-9, June.
    3. Wayne Simpson & Harvey Stevens, 2019. "An Alberta Guaranteed Basic Income: Issues and Options," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 12(15), April.
    4. Henk-Wim Boer & Egbert L. W. Jongen, 2023. "Analysing tax-benefit reforms in the Netherlands using structural models and natural experiments," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 179-209, January.
    5. Olli Kangas & Minna Ylikännö, 2023. "Basic Income and the Status of Women in an Established Gender-Equal Welfare State: Results from the Finnish Basic Income Experiment," IJERPH, MDPI, vol. 20(3), pages 1-13, January.
    6. Abhijit Ramalingam & Brock V. Stoddard, 2021. "Does reducing inequality increase cooperation?​," GRU Working Paper Series GRU_2021_022, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    7. Richard Dorsett, 2021. "A Bayesian structural time series analysis of the effect of basic income on crime: Evidence from the Alaska Permanent Fund," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 184(1), pages 179-200, January.
    8. Tedds, Lindsay M. & Crisan, I. Daria & Petit, Gillian, 2020. "Basic Income in Canada: Principles and Design Features," MPRA Paper 105911, University Library of Munich, Germany.
    9. Guillaume Allegre, 2008. "L'expérimentation sociale des incitations financières à l'emploi : questions méthodologiques et leçons des expériences nord-américaines," SciencePo Working papers Main hal-00973042, HAL.
    10. Ioana Marinescu, 2018. "No Strings Attached: The Behavioral Effects of U.S. Unconditional Cash Transfer Programs," NBER Working Papers 24337, National Bureau of Economic Research, Inc.
    11. David A. Green, 2023. "Basic income and the labour market: Labour supply, precarious work and technological change," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(4), pages 1195-1220, November.
    12. Mohammad Rasoolinejad, 2019. "Universal Basic Income: The Last Bullet in the Darkness," Papers 1910.05658, arXiv.org, revised Nov 2021.
    13. repec:hal:spmain:info:hdl:2441/6148 is not listed on IDEAS
    14. Smith-Carrier Tracy A & Green Steven, 2017. "Another Low Road to Basic Income? Mapping a Pragmatic Model for Adopting a Basic Income in Canada," Basic Income Studies, De Gruyter, vol. 12(2), pages 1-21, December.
    15. repec:spo:wpecon:info:hdl:2441/6148 is not listed on IDEAS
    16. Riddell, Chris & Riddell, William Craig, 2021. "Welfare versus work under a negative income tax: Evidence from the Gary, Seattle, Denver and Manitoba income maintenance experiments," CLEF Working Paper Series 36, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    17. Giupponi, Giulia, 2019. "When income effects are large: labor supply responses and the value of welfare transfers," LSE Research Online Documents on Economics 103424, London School of Economics and Political Science, LSE Library.
    18. Jeffrey Smith & Arthur Sweetman, 2016. "Viewpoint: Estimating the causal effects of policies and programs," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(3), pages 871-905, August.
    19. de Boer, Henk-Wim & Jongen, Egbert L. W., 2020. "Analysing Tax-Benefit Reforms in the Netherlands: Using Structural Models and Natural Experiments," IZA Discussion Papers 12892, Institute of Labor Economics (IZA).
    20. Roos, Leslie L. & Brownell, Marni & Lix, Lisa & Roos, Noralou P. & Walld, Randy & MacWilliam, Leonard, 2008. "From health research to social research: Privacy, methods, approaches," Social Science & Medicine, Elsevier, vol. 66(1), pages 117-129, January.
    21. 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.
    22. Hilary W. Hoynes & Jesse Rothstein, 2019. "Universal Basic Income in the US and Advanced Countries," NBER Working Papers 25538, National Bureau of Economic Research, Inc.
    23. Tromp, Alexander, 2017. "The Effects of a Hybrid Negative Income Tax on Poverty and Inequality: a Microsimulation on the UK and Italy," EUROMOD Working Papers EM15/17, EUROMOD at the Institute for Social and Economic Research.
    24. repec:hal:wpspec:info:hdl:2441/6148 is not listed on IDEAS
    25. Ron Kneebone & Margarita Wilkins, 2019. "Measuring and Responding to Income Poverty," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 12(3), February.

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