Since 1982, all Alaskan residents have received a yearly cash dividend from the Alaska Permanent Fund. Using the Current Population Survey and a synthetic control method, this paper shows that the dividend had no effect on employment and increased part-time work by 1.8 percentage points (17 percent). A calibration of microeconomic and macroeconomic effects suggests that the empirical results are consistent with cash stimulating the local economy—a general equilibrium effect. Nontradable sectors have a more positive employment response than tradable sectors. Overall, the results suggest that a universal and permanent cash transfer does not significantly decrease aggregate employment.
Jones, Damon, and Ioana Marinescu.
"The Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund."
American Economic Journal: Economic Policy,
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
State and Local Government: Health; Education; Welfare; Public Pensions
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Time Allocation and Labor Supply
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics