Evidence regarding the impact of universal basic income and unconditional cash transfers on labor supply is mixed, with some life-cycle models projecting reduced work hours and various empirical studies showing little to no negative change or even increases in labor supply.
The retrieved papers present contrasting findings regarding basic income and cash transfers on labor supply. Some theoretical and life-cycle models (e.g., [6, 7]) and specific demographic analyses (e.g., [9]) suggest a reduction in labor supply, whereas broader empirical reviews and experimental studies of cash transfers (e.g., [0, 1, 5, 8]) show that transfers often result in little to no change or can even increase labor supply and business creation. This division between theoretical models projecting reduced labor and empirical findings showing nuanced or neutral labor market responses supports a CONTESTED verdict.