April 27, 2024

Guaranteed Income Programs Spring Up City by City

Mr. Tubbs’s passion for the idea is rooted in personal experience. He grew up in Stockton with a single mother, and they lived on a tight budget. Guaranteed income programs like those sprouting now, he said, could have helped his family.

Preliminary research by Stacia West of the University of Tennessee and Amy Castro of the University of Pennsylvania, based on the first year of Stockton’s two-year program, found that giving families $500 each month reduced those households’ income fluctuations, enabling recipients to find full-time employment.

Researchers, for example, found that 28 percent of recipients had full-time employment when the program started in February 2019; a year later, the figure was 40 percent.

In one case, a participant had been studying to get his real estate license for more than a year — a pathway to more consistent, higher-paying work — but could not find time to study while piecing together an income doing gig jobs. The money from the pilot program, researchers found, gave him the time to study and get his license.

Now the lessons are being tested on a much broader scale.

Abigail Marquez, a general manager overseeing the Los Angeles pilot program, said the goal of her city’s effort was to promote changes to the ways federal public benefit programs were designed.

“Many, if not all, public benefit program regulations contradict each other, are difficult to navigate and are not focused on creating pathways to greater economic opportunity,” Ms. Marquez said. (Some states, including California, have built-in exemptions to ensure that accepting funding from the pilot programs does not put recipients at risk of losing certain state and federal assistance.)

Article source: https://www.nytimes.com/2022/09/10/business/economy/guaranteed-income.html

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