Social welfare increases labor participation and earnings

We all know the conservative ideology about welfare recipients and it is wrong. The truth is the following. Warning: Facts ahead.

"A 2015 meta-study of cash programs in poor countries found “no systematic evidence that cash transfer programs discourage work” in seven different countries: Mexico, Nicaragua, Honduras, the Philippines, Indonesia, or Morocco. Other studies of cash-grant experiments in Uganda and Nigeria have found that such programs can increase working hours and earnings, particularly when the beneficiaries are required to attend classes that teach specific trades or general business skills."

"One of the latest studies on the subject found that Medicaid has “little if any” impact on employment or work hours. In research based in Canada and the U.S., the economist Ioana Marinescu at the University of Pennsylvania has found that even when basic-income programs do reduce working hours, adults don’t typically stay home to, say, play video games; instead, they often use the extra cash to go back to school or hold out for a more desirable job."


"American adults whose families had access to prenatal coverage under Medicaid have lower rates of obesity, higher rates of high-school graduation, and higher incomes as adults than those from similar households in states without Medicaid, according to a 2015 paper from the economists Sarah Miller and Laura R. Wherry. Another paper found that children covered by Medicaid expansions went on to earn higher wages and require less welfare assistance as adults."