A generous, universal basic income boosted workers’ bargaining power, raising wages in Dauphin, Canada.

"It is often hypothesized that a guaranteed annual income will facilitate a ‘low-road’ economy as government top-ups free employers to reduce wages. To the contrary, this article lends support to the hypothesis that a comprehensive guaranteed income would increase, not decrease, workers’ bargaining power and wages in the labor market. I show that in the Dauphin case, a moderately sized, but unitary and universally available, guaranteed income pulled wage rates up by a considerable amount. It is best to see the policy as an instrument of worker power, not business power."

empirical


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