That would be contrary to how labor markets work in other income ranges: e.g., if someone gets a big inheritance, you'd expect them to be more likely to reduce

That would be contrary to how labor markets work in other income ranges: e.g., if someone gets a big inheritance, you'd expect them to be more likely to reduce their work hours than increase them. Empirically, it seems like the same is true at the bottom of the income distribution ([1], [2]): if you give someone food stamps or cash assistance, they're less likely to work for the same wage. Means-testing the benefits makes the effect stronger, since the phase-out of benefits is equivalent to an additional tax and high taxes also discourage work. [1] https://www.economy.com/dismal/analysis/datapoints/253947/Government-Assistance-and-Work/ https://www.economy.com/dismal/analysis/datapoints/253947/Go... [2] https://www.cbo.gov/sites/default/files/112th-congress-2011-2012/workingpaper/10-25-2012-Recent_Research_on_Labor_Supply_Elasticities_0.pdf https://www.cbo.gov/sites/default/files/112th-congress-2011-...