“As income volatility is related to poor health outcomes, provision of a guaranteed income is a potentially powerful public health intervention.”
—Stacia West, University of Tennessee, and Amy Castro, University of Pennsylvania
Impact of Guaranteed Income on Health, Finances, and Agency
Journal Article Apr-10-2023 , and 3-min read
Table of Contents
Table of Contents
Report Publish Date: April 10, 2023
This journal article describes a study of what happened when 131 people in Stockton, Calif., received $500 a month in guaranteed income for two years.
Primary Takeaways
Compared to people who did not receive unconditional cash payments, people who received $500 a month in guaranteed income from February 2019 to January 2021 reported:
- More stable income.
- Better physical and mental health.
- More dignity, ability to make choices and take risks.
- More time to do things they wanted to do, like spend time with family and do relaxing activities.
The differences between the treatment and control groups were statistically significant during the first year of the study but not during the second year, which coincided with the COVID-19 pandemic.
Overview and Objectives
When people don't have a stable stream of income, research has found, they may experience poor physical and mental health, like cardiovascular disease, depression, and anxiety. The authors wanted to know if giving people cash each month to help cover basic needs like food, childcare, utilities, rent, and transportation—what is known as “guaranteed income”—could not only make households more financially secure but also improve their wellbeing.
The Stockton Economic Empowerment Demonstration (SEED) selected 131 people to receive $500 a month, no strings attached, for two years. Two hundred people were in the control group; they did not receive payments.
Hypothesis or Approach
The authors expected having a steady stream of unconditional income for basic needs would help people weather financial storms, feel less stressed and physically worn down, do activities they couldn’t do when they were pressed for cash, and support others in their networks. The authors mailed invitations to participate to 4,200 people who were at or below Stockton’s median income; they received 478 applications. They collected data in seven waves over the two years of the study and conducted semi-structured interviews with a smaller group of people.
How This Influences Change
This study adds to the body of research showing the ways guaranteed income can improve wellbeing.
Grant Details
Amount awarded:
$285,692
Awarded on: 08/21/2020
Timeframe: 2020-2022
Grant number: 77917
Location: Knoxville, TN
About Grantee:
Contact Info
University of Tennessee, Center for Behavioral Health Research Knoxville, TN 37996
http://cbhr.utk.edu/Research: Go Deeper
Research Team
This study and report was conducted and created by the following people.
- Stacia West
- Amy Castro
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Brief
Guaranteed Income: An Unconditional Investment in Children and Families
This research highlights evidence from programs that provide unconditional, recurring payments and policy recommendations to scale and sustain guaranteed income.