Unconditional cash transfers stimulate consumption, which can offset employment reduction.

"Our preferred interpretation of the empirical patterns we observe is that the null employment effect could be explained a by positive general equilibrium response offsetting a negative income effect. The unconditional cash transfer results in consumption increases that stimulate labor demand and could mitigate potential reductions in employment. While we do not directly test this channel, we do show indirect evidence for this general equilibrium effect in two ways: first, we compare our empirical employment effect to the expected micro and macro effects of the Alaska Permanent Fund dividend based on estimates from prior literature, and second we compare the impact of the cash transfer on the tradable and non-tradable sectors."

empirical