Working through the work disincentive

Concerns about a possible work disincentive appear to be one of the biggest obstacles to guaranteed livable income. In this paper, presented at the USBIG Congress 2009, policy analyst Chandra Pasma examines the assumptions that underlie the belief in a work disincentive. Experimental evidence suggests that the work disincentive is not a significant concern, but it remains a political issue. Advocates therefore need to be able to frame arguments that counter these fears.

There are five key assumptions that contribute to a belief in the work disincentive: people are only motivated to work by money, people are not engaging in good or useful activities if they’re not in the workforce, jobs are readily available for everyone who wants one, it is easy to determine who has a disability and should not be expected to work, and it is wrong to pay people to “do nothing.”

This paper provides a critical evaluation of these assumptions, and looks at the reasons for these beliefs, including our focus on economic development and productivity, our understanding of responsibility as an individual imperative, the Protestant work ethic, and the recent history of poor-bashing in Canada.