Executive summary: A large-scale study in Kenya found that different designs of cash aid had varying impacts. Both a long-term basic income and a large lump sum payment were more effective at boosting entrepreneurship and incomes than short-term aid.
Key points:
A monthly basic income did not reduce work effort but shifted people to self-employment and increased incomes.
Giving a $500 lump sum was better than giving $22 monthly for 2 years for business creation and income gains.
Guaranteeing cash for 12 years encouraged saving and investment more than short-term aid.
Current cash aid programs often use less effective short-term monthly payments. Policymakers should consider more transformative long-term and lump sum aid.
More research is needed on long-term basic income and lump sums in high-income countries.
Future results will show if the long-term basic income’s impact matches its higher cost.
This comment was auto-generated by the EA Forum Team. Feel free to point out issues with this summary by replying to the comment, andcontact us if you have feedback.
Executive summary: A large-scale study in Kenya found that different designs of cash aid had varying impacts. Both a long-term basic income and a large lump sum payment were more effective at boosting entrepreneurship and incomes than short-term aid.
Key points:
A monthly basic income did not reduce work effort but shifted people to self-employment and increased incomes.
Giving a $500 lump sum was better than giving $22 monthly for 2 years for business creation and income gains.
Guaranteeing cash for 12 years encouraged saving and investment more than short-term aid.
Current cash aid programs often use less effective short-term monthly payments. Policymakers should consider more transformative long-term and lump sum aid.
More research is needed on long-term basic income and lump sums in high-income countries.
Future results will show if the long-term basic income’s impact matches its higher cost.
This comment was auto-generated by the EA Forum Team. Feel free to point out issues with this summary by replying to the comment, and contact us if you have feedback.