The Impact of Basic Income on Recipients: A Comprehensive Study
A recent study on basic income, funded by Open artificial intelligence Founder Sam Altman, delved into the effects of providing low-income earners with a guaranteed payday, no strings attached. The study, considered one of the largest and most comprehensive of its kind, examined various aspects of recipients’ lives, including health, spending, employment, and overall well-being.
Understanding the Cash Recipients
In the OpenResearch’s Unconditional Cash Study, 3,000 participants in Illinois and Texas received $1,000 per month for three years, starting in 2020. These recipients had an average income of less than $29,000, falling below 300 percent of the federal poverty level. In comparison, a control group of 2,000 participants received monthly donations of $50. The study found that basic income recipients allocated their extra money towards necessities like rent, transportation, and food.
Changes in Work Behavior
The research also analyzed the impact of receiving free money on the work habits of recipients. It was discovered that individuals who received cash transfers worked 1.3 to 1.4 hours less per week compared to those in the control group. Rather than working during these hours, recipients opted for leisure activities. Despite the slight decline in labor supply, the lead researcher, Eva Vivalt, mentioned that this had a positive effect on recipients’ well-being.
Benefits of More Autonomy
Vivalt highlighted that the reduction in working hours should not be viewed negatively. Instead, it provides recipients with more autonomy in deciding how to spend their time, ultimately contributing to their overall well-being and happiness. Cash transfers allow individuals to prioritize leisure, which can have a positive impact on their mental health.
Transitioning to a society where basic income becomes necessary may result in changes in work patterns, increased focus on well-being, and a shift towards more leisure time. As the study continues to explore the long-term effects of basic income, it sheds light on the potential benefits and challenges associated with this innovative approach.
