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Nobel-Prize laureate Abhijit Banerjee on the world's largest UBI experiment

Future Tense

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Different Incentive Structures Yield Different Outcomes

In a Kenyan trial, participants received either monthly payments for an extended period, monthly payments with an abrupt end after two years, or a lump sum at the beginning with no further payments. Despite receiving the same amount, those in the long-term group were more inclined to invest in businesses, both agricultural and non-agricultural. This suggests that the incentive structure influenced participants' behaviors, with long-term individuals focusing on future growth while short-term participants prioritized immediate gains.

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