Universal basic income reduces labor supply for menial tasks
the verdict
CONTESTED
the evidence cuts both ways
confidence 28/100
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.
Evidence for · 3
Universal Basic Income: Consumption, Human Capital, and Labor Supply
2026 · cited by 0
Life-cycle modeling and laboratory evidence indicate that UBI leads to reduced labor supply.
Evidence against · 4
The effects of cash transfers on adult labor market outcomes
2018 · cited by 132
Broad evidence suggests that general cash transfers result in little to no change in adult labor supply outside of specific groups like the elderly.
See more details
More for · 2
Universal Basic Income: Consumption, Human Capital, and Labor Supply
2026 · cited by 0
Similar to paper [6], this identical study demonstrates that UBI induces a reduction in labor supply.
The unintended effects of universalizing social pensions: Evidence from Mexico
2026 · cited by 0
Evidence from pension expansions shows that low-income individuals reduce their labor supply after receiving unconditional transfers.
More against · 3
Conditional cash transfer programs and household labor supply
2021 · cited by 22
Conditional cash transfer programs with mentoring can actually increase the likelihood of employment for fathers.
Cash Transfer Programs and Household Labor Supply
2020 · cited by 1
Similar to paper [1], randomized evaluations find that certain cash transfer programs increase, rather than decrease, parental labor supply.
Research Insights: Can Cash Transfer Programs Increase Labor Supply?
2019 · cited by 0
Nationwide cash transfer programs can increase work hours and the probability of working among parents by helping them finance small businesses.