This study explores the causal impacts of income on a rich array of employment outcomes, leveraging an experiment in which 1,000 low-income individuals were randomized into receiving $1,000 per month unconditionally for three years, with a control group of 2,000 participants receiving $50/month.
An extensive literature in economics documents large and persistent declines in earnings following involuntary job loss. Though Unemployment Insurance provides the largest buffer against lost income, due to the structure of the program, the neediest are less-well insured (in terms of dollars transferred and percentage of lost earnings replaced) compared to middle and higher income job losers. This has important implications in light of the historic number of job losses during the COVID-19 pandemic.
