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Advocates of basic income tout the policy as a solution to poverty. Yet debates exist over whether it might backfire and sap the motivation of low-wage workers, leading to an exodus of labor from low-pay jobs. Studies have shown that financial incentives often reduce the motivation of individuals to work, and this is a possibility with basic income. Drawing on work in economics, psychology, and public policy, this research seeks to determine the likelihood of this outcome. It analyzes the possible effects on labor force participation rates, exploring arguments from both sides as to whether this concern about basic income is credible. After doing so, the following concern would be the degree to which this would affect society, as with lower-wage jobs potentially losing a portion of their volume of work, their performance would be severely hindered.



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Would Basic Income Reduce Worker Motivation? A Review of the Evidence