A new experiment funded by tech mogul Sam Altman has shown that people who receive free money tend to work less.
The Experiment:
The study, called “The Employment Effects of Guaranteed Income,” gave 1,000 low-income individuals $1,000 per month for three years, no strings attached.
The Results:
While the extra money helped participants with basic needs like food, transportation, and rent, and even reduced stress levels, they worked an average of 15 minutes less per day.
The Takeaway:
Researchers say policymakers should consider this finding when thinking about potential UBI programs. They believe people value time away from work and that’s why they chose to work less.
Other Studies:
However, other UBI studies have shown different results. For example, the Denver Basic Income Project found that many participants actually increased their full-time employment.
The Big Picture:
Over the past few years, many UBI pilot programs have sprung up across the US, in places like Michigan, Los Angeles, Chicago, and Austin. These programs are testing different ways to provide guaranteed income and see how it affects people’s lives.
Important Note:
It’s important to remember that these are just preliminary findings. More research is needed to fully understand the impact of UBI on work habits and the overall economy.
