We plan to scientifically test the idea of a universal basic income by providing regular cash payments to thousands of extremely poor households in East Africa for more than ten years. The study will aim to answer the key questions at the heart of the global debate:
Could this end extreme poverty or will people stop working? Will people take more risks and become more entrepreneurial, or spend more time getting an education or parenting?
A fully universal, long-term pilot of a basic income has never been rigorously tested, so we intend to do just that.
To provide a true test of basic income, we want to (1) provide payments for a long enough time to allow people to make long-term investments or take risks, (2) provide payments to whole communities universally, and (3) provide payments that would be big enough to cover basic needs. We combined those pieces and then determined what sample size would best allow us to detect the impact of basic income, as well as potentially understand the differences between possible variations. None of these estimates are precise, and we'll refine them with our research team over the next few months, but they come out to needing about $30M for our desired study.
Our preliminary estimate of the percentage of this that will be cash transfers works out to a similar fraction to current transfers: approximately 90% of budget delivered to the poor. Overall management costs per recipient will be higher, but the total amount transferred will also be higher given the long duration.
As we have in the past, we'll collaborate with top scholars, including Abhijit Banerjee of MIT.
We're considering several different types of outcomes to gauge the impact of basic income:
People around the world are debating whether a basic income could end poverty and provide a floor for everyone. Some think it’s immoral for the world to have so much money and some people to still have none; some think robots and artificial intelligence will take all our jobs; some think basic income will be more efficient than current welfare policies. And some think it won’t work.
At GiveDirectly, we have a track record of testing cash transfer programs empirically in order to inform these policy debates. We’ve seen that when we give extremely poor families short-term cash grants, they use the money to improve their lives (no, they don’t drink it away or stop working).
Finding out the answers could shape the future of anti-poverty policy.
A basic income guarantee is a public policy that would provide all people a basic floor—an income that is enough to live on and that is provided irrespective of work simply because the recipient is a member of that community. It is provided to everyone, regardless of need, forever.
Since the time of Thomas More, people from across the political spectrum have expressed interest in the idea, from Dr. Martin Luther King Jr., to the conservative economists Milton Friedman and F. A. Hayek. Some argue this is the moral thing to do; others argue replacing a patchwork of existing government programs with a basic income is more efficient; technologists argue the coming robotization of the workforce makes it necessary. And it's not just words; in countries where basic income is up for debate, trillions of dollars of social services are at stake.
The deep evidence base for unconditional cash transfers provides plenty of reasons to be intrigued by basic income. We know people who receive cash transfers don't blow it on drinks or stop working but rather increase their earnings, their assets, and their psychological well-being.
But, we know less about basic income. We haven't yet seen a rigorous evaluation of a program that is:
A number of studies provide helpful information, and there are some pilots coming online, but none so far has met all of these criteria.
| recipients | universal | basic | long-term | RCT | ||
|---|---|---|---|---|---|---|
completed pilots |
Manitoba (Mincome), 1975–1978 | 1300 | * | |||
| New Jersey, 1968–1972 | 1216 | |||||
| Seattle/Denver | 4800 | ** | ||||
| Rural Iowa & North Carolina, 1970–1972 | 809 | |||||
| Gary, Indiana, 1971–1974 | 1799 | |||||
| Namibia | 930 | |||||
| Madhya Pradesh, India | 6000 | |||||
| Eastern Band of Cherokees Casino Dividend | 15000 | *** | ||||
incomplete |
Finland 2017 | |||||
| Utrecht, Netherlands | ||||||
| Mein Grundeinkommen, Germany | ||||||
| Ontario, Canada | no details yet | |||||
| * | included a single saturation site as part of overall study |
| ** | provided long-term payments to only 169 families |
| *** | varies with profits |
Additionally, a basic income trial should use rigorous experimental research—randomized controlled trials (RCTs)—to measure impact.
At GiveDirectly, we're convinced enough by the evidence for cash transfers to be intrigued but think the debate is important enough to merit a rigorous test of the program.
Not everyone who advocates for a “basic income” prioritizes or even wants all of the components (unconditional, universal, lifetime, sufficient for basic needs) equally. The most common variants either restrict the receiving group (via a negative income tax or otherwise targeted approach) or lower the guaranteed income “floor” below basic needs. Someone's preferred variant depends on the arguments and perspectives that are leading them to basic income in the first place or considerations about political feasibility. Similarly, there are a wide variety of proposals for funding basic income programs in different countries. You can get more of a sense of the types of variants people are thinking about at "What is the Basic Income Guarantee?"
For just $1 per day, you can provide one person in East Africa a basic income and help fund an historic policy experiment. 90% of your dollar will go directly into the hands of an extremely poor individual, allowing him or her to fundamentally change their own life.
At a minimum our money will shift the life trajectories of thousands of low-income households. At best, it will change how the world thinks about ending poverty.