Instead of using extra time to work or pursue education, many recipients simply relaxed. On average, UBI recipients worked 1.3 hours less per week. This decline in work hours translated into a decrease in annual individual income of about $1,500 when compared to those who did not receive UBI. The findings raise a troubling question: Is UBI actually making people poorer?
Unemployment rates among recipients also paint a grim picture. Many individuals stayed unemployed longer, suggesting they weren’t utilizing the additional free time to secure better job opportunities. While it was noted that recipients became more selective in their job applications, there were no significant changes in the types of jobs they sought or the quality of those positions.
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So, what did people do with the extra time? They primarily engaged in relaxation and leisure activities, indicating that the additional autonomy provided by UBI didn’t translate into productive endeavors.
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The study suggests that while UBI offered recipients more control over their schedules, it failed to generate better job opportunities or enhance educational pursuits. Instead, it resulted in fewer work hours and more leisure time, raising questions about the effectiveness of UBI in achieving its intended goals.
Foundation for Economic Education (FEE): The Largest Study Ever on UBI Was Just Conducted—The Results Are Disappointing for Advocates
CBS News: Here’s what a Sam Altman-backed basic income experiment found
GiveDirectly: Early findings from the world’s largest UBI study