Investing in a Stronger Canada

An Investment in Canada’s Future

Basic Income Factsheet

It is well established that a basic income guarantee could virtually eliminate poverty in Canada for a fraction of the cost of poverty. What is lesser known are the wide-ranging benefits of investing in working families, students, and business owners. This short brief shares key research showing the economic imperative of basic income in Canada.

Enhance employment & education

No study has found meaningful reduction in work, beyond students and new parents. Many show it boosts employment prospects.

The PBO estimates that a guaranteed basic income would impact hours worked just 1%, or “basically a few hours a year”. [1]
Sam Altman’s UBI study found no conclusive impact on work, except for single parents. Recipients on average took the equivalent of an extra 15min break/day. [2]
During the Manitoba Mincome Experiment, the only groups who worked less were new mothers and teenage boys who stayed in high school. Median wages increased 6.8% as a result of greater bargaining power at the bottom. [3]
During the Ontario Basic Income Pilot, 1/3 of recipients surveyed who were continuously employed found higher paying work. 1/3 said basic income helped them in their employment or building a business. 1/4 started an educational or training program. [4]
A meta-analysis of over 105,000 participants across 16 studies found no meaningful reduction in employment or hours worked. [5]
Germany’s largest UBI pilot found no difference in employment or hours worked among recipients, compared to control. More recipients enrolled in university. [6]

Cheaper than poverty

A broad-based basic income can be funded with just 3% of total government spending and no new taxes on working Canadians.

A basic income that guarantees all Canadians aged 18-64 an income of 75% of the Low-Income Measure could be funded at net cost of $36B/year, roughly 3% of spending at all levels of government. The cost of poverty in healthcare, crime, and lost productivity is estimated to be at least $85B/year. [7]
The PBO estimates that such a program could reduce poverty rates by 40% according to the Market Basket Measure (MBM) or 80% according to the Low Income Cut-off (LICO). [1]

Grow the economy & create jobs