4 ms·
I am wondering how bad the disincentive to work really is. In the microcosm of my family home, our kids have their basic needs (and then some) met, they receive
by rskar 10y ago
I am wondering how bad the disincentive to work really is. In the microcosm of my family home, our kids have their basic needs (and then some) met, they receive allowances, and yet they still seek ways to earn extra money. My expectation is that there are plenty of humans in our nation (let alone the world) who will have desires that will outstrip the about $10,000 of basic income. For anyone in business fretting on available labor, it seems the costs of wages, benefits, and maintaining a work environment suitable for human activity is a much bigger issue - which are mostly addressed by ever growing use of automation. There's already talk of $15/hr wages spurring on ever more automation at fast-food restaurants and retailers - and that $15/hr push being made largely because of the number of people who receive government assistance while holding down jobs (http://blogs.wsj.com/economics/2015/04/13/get-a-job-most-welfare-recipients-already-have-one/ http://blogs.wsj.com/economics/2015/04/13/get-a-job-most-wel...).
Anyway, per https://en.wikipedia.org/wiki/Mincome https://en.wikipedia.org/wiki/Mincome, this 5 year study has many qualifiers placed upon why the drop in labor, with the more interesting of these involving child care, education, and mental health: The results showed an impact on labor markets, with working hours dropping one percent for men, three percent for married women, and five percent for unmarried women. However, some have argued these drops may be artificially low because participants knew the guaranteed income was temporary. These decreases in hours worked may be seen as offset by the opportunity cost of more time for family and education. Mothers spent more time rearing newborns, and the educational impacts are regarded as a success. Students in these families showed higher test scores and lower dropout rates. There was also an increase in adults continuing education. ... Manitoban economist Evelyn Forget conducted an analysis of the program in 2009 which was published in 2011. She found that only new mothers and teenagers worked substantially less. Mothers with newborns stopped working because they wanted to stay at home longer with their babies, and teenagers worked less because they weren't under as much pressure to support their families, which resulted in more teenagers graduating. In addition, those who continued to work were given more opportunities to choose what type of work they did. Forget found that in the period that Mincome was administered, hospital visits dropped 8.5 percent, with fewer incidents of work-related injuries, and fewer emergency room visits from accidents and injuries. Additionally, the period saw a reduction in rates of psychiatric hospitalization, and in the number of mental illness-related consultations with health professionals.