Guaranteed Income Works: Data from Tacoma, wa

Recipients of guaranteed income began with similar average annual household incomes as the control group. Six months into the program, recipients exhibited a significantly higher mean income, with a mean difference of $3,175. Six months after payments stopped, recipients not only sustained a higher annual income but also demonstrated reduced income volatility (37 percent versus 42 percent in the control group).

Recipients exhibited significant improvements in financial resilience, particularly in their ability to manage a $400 emergency expense. Initially, the ability to fully cover such an expense using cash or credit was similar between the treatment and control groups, recorded at 14 percent and 17 percent, respectively. However, the treatment group demonstrated a notable increase in this capacity, peaking at 37 percent at the 6-month period and 28 percent at 12 months. The control group experienced a reduction of 6 percent points during the same time period. 

Additionally, the study observed shifts in savings behaviors within both groups. At the study’s onset, 14 percent of recipients and 18 percent of the control group reported having savings exceeding $500. Recipients showed a statistically significant increase in savings, while the control group saw a reduction

Recipients of guaranteed income were  significantly more likely to be employed across every time point evaluated.  At Baseline, 57 percent of recipients were employed full time, and that number rose to 65 percent within six months of receiving monthly payments. The impact was sustained after the program ended, with 66 percent of recipients working full time six months after payments stopped. The control group began with 42 percent employed full-time, and by 18 months had reached 50 percent. 

Additionally, data demonstrated stability of full-time employment among recipients (63 percent) over time relative to the control group (52 percent). The proportion of participants who identified as stay-at-home parents or caregivers remained almost 10 percent points higher in the control cohort relative to guaranteed income recipients across all time periods.

This study period occurred during a period of historically high inflation and rising food costs. Although both groups experienced food insecurity, the control group consistently reported higher levels of food insecurity across various measures. The percentage of control group participants expressing concerns about sufficient food availability rose from 45 percent at the study’s onset to 68 percent by its conclusion. In contrast, the concerns of recipients grew less substantially, from 42 percent to 53 percent during the same timeframe.

Recipients consistently displayed a reduced cost burden compared to those in the control group throughout the duration of the study. 

Participants in both groups reported an average of one housing move during the demonstration. However, by the study’s conclusion, a greater proportion of recipients reported transitioning into higher-quality homes (50.91 percent) and more desirable neighborhoods (26.36 percent) compared to the control group (46.97 percent and 22.73 percent, respectively).