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The Employer Response to the Guaranteed Annual Income

Studies the Manitoba Basic Annual Income Experiment from the 1970's in Canada, exploring whether guaranteed income leads to an 'employer response' of either raising or lowering wages. Using an archived survey of local firms, the author finds support for the former, that basic income tightened labor markets and raised wages.

2020

Academic Paper

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“ When payment is conditional on work or narrowly targeted, basic income will increase workers’ market dependence and facilitate exploitation, but when it is generous, broadly available, and crucially, delinked from work, it will obstruct exploitation.” Business owners during Dauphin's Mincome experiment reported that while receiving the Mincome, new employee applicants were increasingly "unacceptable" because they were "not willing to train at reduced salary". A generous, universal basic income boosted workers’ bargaining power, raising wages in Dauphin, Canada.
David Calnitsky
Basic Income
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