Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272603 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 15976
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
welfare reform
cash transfer
basic income
policy evaluation
RCT
JEL: 
C93
H53
I38
J64
Document Type: 
Working Paper

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