This paper reports the results of an economic lab experiment designed to test the impact of Basic Income (BI) on wages and productivity. The experimental design is based on the classic gift exchange game. Participants assigned the role of employer were tasked with making wage offers, and those assigned as employees chose how hard they would work in return. In addition to a control without any social security net, BI was compared to unemployment benefits, and both types of cash transfers were tested at two levels. The results are that wage offers were increased in both the BI and unemployment benefit treatments compared to the control. The higher-level BI treatment also significantly increased effort. Further experimentation could shed more light on how the potential extra value created in the labor market through increased productivity would be divided between employers and employees.
Contents
- Research Articles
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Requires Authentication UnlicensedBasic Income, Wages, and Productivity: A Laboratory ExperimentLicensedOctober 29, 2019
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Requires Authentication UnlicensedHow Much Does Basic Income Cost? Modelling Basic Income as Universal Life AnnuityLicensedNovember 16, 2019
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Open AccessExploring the Health Case for Universal Basic Income: Evidence from GPs Working with Precarious GroupsNovember 5, 2019
- BIS Essay Prize Winner for 2017
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Requires Authentication UnlicensedJust End Poverty Now: The Case for a Global Minimum IncomeLicensedSeptember 28, 2019
- Book Reviews
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Requires Authentication UnlicensedPeter Barnes: With Liberty and Dividends for All. How to Save Our Middle Class When Jobs Don’t Pay EnoughLicensedAugust 15, 2019
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Requires Authentication UnlicensedReview of Basic Income: And How We Can Make It Happen, Guy Standing (Pelican, London 2017)LicensedJuly 30, 2019
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Requires Authentication UnlicensedEvelyn Forget: Basic Income for Canadians: The key to a healthier, happier, more secure life for allLicensedAugust 10, 2019