Universal Basic Income Does Not Stop People from Working, Study Finds

German Research Finds that Those Receiving Payments Reported Higher Life Satisfaction but Were Not Likely to Withdraw from the Labour Market

PARIS: People who are paid enough to live on without any conditions attached were no less likely to work fewer hours and reported better mental health than others, according to a German study published yesterday.

Methodology

In the research, 107 people were paid €1,200 (about RM5,900) a month for three years with no obligation to work, and were compared against a control group of 1,580 people who received no such payment.

Findings

The study, the biggest to be conducted into universal basic income (UBI) in Germany, found that the group receiving the payments were also no more likely to withdraw from the labour market.

They also reported higher life satisfaction and a greater feeling of control over their lives, according to the study published by the German Institute for Economic Research.

Additional Findings

On average, participants receiving the money spent about four hours more on social activities a week than those who did not, with the researchers writing that this might be linked to the extra cash in their pockets.

“Social activities are often accompanied by expenses, be it for visits to restaurants, cinema tickets or joint leisure activities,” they noted.

Improvements lasted for the duration of the study, the researchers said, but participants receiving the UBI showed no change when it came to their political convictions or psychological traits such as willingness to take risks.

“Study participants acted differently not because their core personalities changed, but because their possibilities changed,” said psychologist Susann Fiedler from the Vienna University of Economics and Business, one of the study’s authors.

Conclusion

The study suggests that universal basic income can have a positive impact on individuals, increasing their life satisfaction and sense of control, without affecting their likelihood of working. This could be an important consideration for policymakers considering the implementation of UBI as a response to the potential job losses caused by automation.

FAQs

What is Universal Basic Income (UBI)? UBI is a system in which all citizens or residents of a country receive a regular, unconditional sum of money from the government to cover their basic needs.

What were the results of the study? The study found that participants receiving UBI reported higher life satisfaction, a greater feeling of control over their lives, and spent more time on social activities, but were not less likely to work.

How was the study conducted? The study was conducted in Germany, where 107 people received a monthly payment of €1,200 for three years, while a control group of 1,580 people received no such payment.

What are the implications of this study? The study suggests that UBI can have a positive impact on individuals, increasing their life satisfaction and sense of control, without affecting their likelihood of working.