A study conducted by OpenResearch has shed light on the transformative potential of universal basic income (UBI). The research aimed to “learn from participants’ experiences and better understand both the potential and the limitations of unconditional cash transfers.”
The study – which provided participants with an extra $1,000 per month – revealed significant impacts across various aspects of recipients’ lives, including health, spending habits, employment, personal agency, and housing mobility.
In healthcare, the analysis showed increased utilisation of medical services, particularly in dental and specialist care.
One participant noted, “I got myself braces…I feel like people underestimate the importance of having nice teeth because it affects more than just your own sense of self, it affects how people look at you.”
While no immediate measurable effects on physical health were observed, researchers suggest that increased medical care utilisation could lead to long-term health benefits.
The study also uncovered interesting spending patterns among UBI recipients.
On average, participants increased their overall monthly spending by $310, with significant allocations towards basic needs such as food, transportation, and rent. Notably, there was a 26% increase in financial support provided to others, highlighting the ripple effect of UBI on communities.
In terms of employment, the study revealed nuanced outcomes.
While there was a slight decrease in overall employment rates and work hours among recipients, the study found that UBI provided individuals with greater flexibility in making employment decisions aligned with their circumstances and goals.
One participant explained, “Because of that money and being able to build up my savings, I’m in a position for once to be picky…I don’t have to take a crappy job just because I need income right now.”
The research also uncovered significant improvements in personal agency and future planning.
UBI recipients were 14% more likely to pursue education or job training and 5% more likely to have a budget compared to the control group. Black recipients in the third year of the program were 26% more likely to report starting or helping to start a business.
Lastly, the study’s analysis revealed increased housing mobility among UBI recipients. Participants were 11% more likely to move neighbourhoods and 23% more likely to actively search for new housing compared to the control group.
The study provides valuable insights into the potential impacts of UBI, offering policymakers and researchers a data-driven foundation for future decisions on social welfare programs. This major societal conversation may be necessary if worst case scenarios around AI-induced job displacement come to fruition.
(Photo by Freddie Collins on Unsplash)
See also: AI could unleash £119 billion in UK productivity
Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.
Explore other upcoming enterprise technology events and webinars powered by TechForge here.