Research results indicating that there is no effect on labor demand even if introducing 'basic income' which can receive money without working

ByAlan Levine

As technologies evolve to automate various occupations, Tesla's Eulon Mask said "Governments of various countries will need to consider introducing basic incomeWe expect it. On the other hand, there is a strong argument that "the people will not work" to introduce the basic income unconditionally paid the minimum necessary funds for daily life. In Iran, a system of guaranteeing 29% of the national average income from cash payment in 2011 has been introduced, but what was the impact of the actual implementation of the basic income system? That is being investigated.

CASH TRANSFERS AND LABOR SUPPLY: EVIDENCE FROM A LARGE - SCALE PROGRAM IN IRAN
(PDF file)http://erf.org.eg/wp-content/uploads/2017/05/1090.pdf

Here's what happened when Iran introduced a basic income | The Outline
https://theoutline.com/post/1613/iran-introduces-basic-income


Instead of a significant reduction in oil and gas subsidies in Iran, a system of paying cash in cash regardless of employment status was introduced for 1.5 dollars a day (about 170 yen), which is 29% of the national average income It was. In terms of the average annual income in the United States, it is said that $ 16,000 (about 1.78 million yen) is paid unconditionally every year, but what was the impact on the labor force in Iran after 6 years since introduction , Economist Djavad Salehi-Isfahani, Mohammad H. Mostafavi-Dehzooeifrom et al. Have summarized the results of the investigation.

In the survey, the method of comparing the labor situation of the same year with the transition of household income in the previous year (2010) and the following year (2011) when the cash assistance system began was taken. The data used was gathered at the Iranian Statistical Center (SCI) dealing with Iranian official data and as a result of the investigation the evidence that the cash assistance system had an impact on Iran's labor demand was almost all generations It is said that the work hours of employees increased in jobs like the service industry, resulting in the expansion of the business.


Meanwhile, the result that the working hours of young people in their 20s decreased, but in Iran it seems that the employment situation of young people was not good before the cash assistance system was established. The fact that the working hours of young people in their twenties declined is thought to be due to the additional income of cash assistance used for advanced studies. Researchers said that "The research showed that it is better to leave better data that can be used for the next research against the problem that is considered" to claim cash assistance to make the poor lazy " That's it. "