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Cash Transfers, Credit, and Entrepreneurial Activity: Evidence from Universal Basic Income Program

How do cash transfers affect income from work? Over the last decade, unconditional and perpetual cash transfers such as Basic Income (BI) proposals or Universal Basic Income (UBI) proposals have garnered considerable attention. However, while such cash transfers are a topic of intense debate amongst academics and policymakers, direct empirical evidence on the subject is scarce. Among the biggest questions in this debate is if such unconditional cash transfers can reduce incentives to work? Our paper attempts to answer this question in the context of self-employed individuals or entrepreneurs. Specifically, this paper seeks to address the question - Do unconditional and perpetual cash transfers affect entrepreneurial activity? If so, how?

Project Team
Pulak Ghosh and Nishant Vats
Sponsor
IIM Bangalore
Select Project Type
Ongoing Projects
Project Status
Ongoing (Initiated in August 2022)
Funded Projects Functional Area
Decision Sciences
Project Team : Pulak Ghosh and Nishant Vats
Sponsor : IIM Bangalore
Project Status: Ongoing (Initiated in August 2022)
Area : Decision Sciences
Abstract :

How do cash transfers affect income from work? Over the last decade, unconditional and perpetual cash transfers such as Basic Income (BI) proposals or Universal Basic Income (UBI) proposals have garnered considerable attention. However, while such cash transfers are a topic of intense debate amongst academics and policymakers, direct empirical evidence on the subject is scarce. Among the biggest questions in this debate is if such unconditional cash transfers can reduce incentives to work? Our paper attempts to answer this question in the context of self-employed individuals or entrepreneurs. Specifically, this paper seeks to address the question - Do unconditional and perpetual cash transfers affect entrepreneurial activity? If so, how?