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Unconditional Cash & Job Search: How Agency Impacts Employment

This study examines the impact of unconditional cash transfers on employment, job search, and work hours. The study followed a group of recipients and a control group over three years. The results suggest that recipients had increased agency to make employment decisions that align with their individual circumstances, goals, and values.

Impact of Cash Transfers on Employment

The study found that while both recipients and control participants experienced a substantial increase in employment rates and work hours, the increases were larger for the control group. On average, recipients were 2 percentage points less likely to be employed than control participants.

• Employment rates at enrollment: 58% for recipients and 59% for control participants.
• Employment rates at the end of the program: 72% for recipients and 74% for control participants.
• Recipients worked an average of 1.3 fewer hours per week compared to control participants.

Variation in Employment Outcomes

The study highlights the variation in employment outcomes among recipients. This variation is attributed to recipients' individual circumstances, goals, and values.

• Age: Recipients under 30 were more likely to use the cash transfer to pursue education or training, leading to a reduction in work hours.
• Single parents: Single parent recipients were less likely to be employed and worked fewer hours than single parent control participants.
• Income at enrollment: Recipients with higher household income at enrollment were more likely to reduce their work hours or employment, while the effect was less pronounced among those with lower income.

Job Search Strategies

The study suggests that recipients used the cash transfer to prolong periods of unemployment and be more selective in their job searches. This allowed them to find jobs that better matched their skills and preferences.

• Recipients were more likely to be actively searching for jobs and had applied for more jobs than control participants.
• Recipients were more likely to prioritize interesting or meaningful work when searching for a job.

Time Use and Agency

Recipients used the extra time and income from the cash transfer to prioritize various aspects of their lives, including caregiving, education, health, and leisure.

• Caregiving: Some recipients used the transfer to reduce work hours and spend more time with family, particularly those with children with special needs.
• Education: The transfer provided opportunities for recipients to pursue further education or training, leading to career advancement for some.
• Health: Recipients were able to prioritize their physical or mental health, seeking care or taking time for recovery.
• Leisure: Some recipients used the transfer to take a break from work and pursue personal interests, resulting in improved mental well-being.

Implications for Job Search and Employment

The study demonstrates that unconditional cash transfers can empower individuals by providing them with increased agency to make employment decisions that align with their priorities and circumstances. This agency allows recipients to be more selective in their job searches, pursue education or training, or prioritize their well-being, leading to a more fulfilling work-life balance.

The study's findings highlight the importance of considering individual needs and circumstances when evaluating the impact of social programs on employment. While average effects might show a reduction in work hours or employment, these effects often mask the nuanced and varied experiences of recipients. The study underscores the importance of understanding how recipients utilize cash transfers to navigate employment decisions and improve their overall well-being.