How do unconditional grants affect employment?

Many proponents of a basic income grant assume that such a grant would support job search or further education. A new NBER paper studies the impact of a large ($US 1000 per month) long-term (3 year) unconditional grant to low-income individuals on behaviour. The authors note that this was the ‘largest unconditional cash transfer program evaluated by a randomized controlled trial in the U.S. to date in terms of the amount disbursed’. They use very detailed survey data, administrative records and mobile phone data to evaluate behavioural impacts. They find that grants reduced labour market participation, with no beneficial impact on employment or investments in human capital.