The Employment Effects of Generous and Unconditional Cash Support

Arbeitspapier

While unconditional cash transfers have been studied extensively in developing countries, little is known about their effects in a wealthier context. Through a randomized controlled trial, we study the employment effects of a generous and unconditional transfer targeting low-income families in Spain. Two years into the program, subjects assigned to treatment are 20 percent less likely to work than subjects assigned to a control group. Assignment to an activation plan does not attenuate adverse effects; a more lenient transfer withdrawal rate does. It appears that effects are driven by subjects with children, suggesting substitution of labour for care tasks.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 15976

Classification and Topics

• Classification: Wirtschaft ; Field Experiments ; National Government Expenditures and Welfare Programs ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: welfare reform ; cash transfer ; basic income ; policy evaluation ; RCT

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Verlaat, Timo ; Todeschini, Federico ; Ramos, Xavier
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/272603
• Last update: 10.03.2025, 11:42 AM CET