The employment effects of a means-tested guaranteed income policy

A-Tier
Journal: Journal of Public Economics
Year: 2025
Volume: 248
Issue: C

Authors (3)

Verlaat, Timo (not in RePEc) Todeschini, Federico (not in RePEc) Ramos, Xavier (Universitat Autònoma de Barcel...)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Through a randomized controlled trial, we study the labor market effects of a generous means-tested guaranteed income policy targeting low-income families in Barcelona. Two years into the program, beneficiaries are 22 % less likely to work compared to subjects assigned to a control group. A lower phase-out of transfers attenuates negative employment effects and reduces the government cost per euro of benefit by two-thirds. Participation elasticities for a family of four range from 0.39 to 0.49. Treatment effects persisted at least 6 months after the program ended. We find indications that effects are driven by subjects with care duties, suggesting substitution of labor for care tasks.

Technical Details

RePEc Handle
repec:eee:pubeco:v:248:y:2025:i:c:s0047272725001185
Journal Field
Public
Author Count
3
Added to Database
2026-01-29