Mr. Schwerter, let me start with a fundamental question: Why do people work?
Frederik Schwerter: Work can be fulfilling when it allows individuals to use and grow their talents. It often plays a key role in shaping one’s identity, providing meaning in life, and gaining recognition within society. Of course, money is usually an important motivator, as it helps fulfil essential needs. Beyond that, work can offer opportunities to pursue goals and interests that extend beyond personal well-being. Additionally, positive interpersonal relationships at work can be a powerful motivator, particularly when the work environment is fair, and colleagues and superiors treat each other with respect and trust.
Will people stop working if they receive a basic income?
Frederik Schwerter: This is an important question, and we still need more data to answer it fully. At the moment, there’s a lack of empirical evidence to provide a conclusive response.
It’s possible that some people might stop working or reduce their working hours to focus on other pursuits. Their priorities could shift towards personal interests or other important tasks, such as engaging in a hobby, caring for a family member, volunteering, furthering their education, or reorienting their career. However, if individuals are generally satisfied with their work or see it as a calling, they are just as likely to continue working.
A reasonable assumption is that people will react differently to a basic income. The question then becomes how pronounced these effects will be in society, and which ones will prevail.
Is money really a good motivator?
Frederik Schwerter: In principle, yes, but with an important caveat. Money, or other forms of extrinsic motivation such as social recognition, can sometimes displace intrinsic motivation. In short, an activity driven solely by intrinsic reasons may lead to more diligence and dedication than an activity for which you are paid.
How could a basic income change our motivation to work?
Frederik Schwerter: A basic income could make intrinsic motivation to work more important. Certain tasks at work could take on new significance as a result. If the primary focus is no longer on earning money, employees might feel more empowered to invest in creating a positive work environment, for example. People with a basic income might also take a little more time to choose a job, thus increasing their chances of finding the perfect position for them.
»AA basic income could lead to a shift in the motivation to work, with intrinsic factors becoming more important.«
A basic income could lead to a shift in power in the labour market. What effects are you particularly interested in, and how can they be studied?
Frederik Schwerter: First of all, I’m interested in how employees might react to a basic income. How would the supply of labour change? The Basic Income Pilot Project aims to provide important initial insights to answer this question. In the next step, it would be interesting to understand how employers respond to a basic income and whether it changes the balance in the labour market. This would require larger-scale studies, such as introducing a basic income in entire states.
What role does the fact that the money is given unconditionally actually play?
Frederik Schwerter: Context plays an important role here. For example, people’s sense of security could increase as a result of a basic income payment. It could also strengthen the sense of community. Unlike taxes, a basic income is a direct payment from the community to the individual. Since people often act reciprocally—what goes around, comes around—this could lead to behaviour that strengthens the community. Moreover, a basic income could have a positive effect on unemployed people. If a basic income replaces unemployment benefits, any associated stigma would be eliminated. Everyone would receive a basic income. However, it’s difficult to predict whether and to what extent such effects would be felt in the specific case of a basic income. It’s also possible that after a few months of receiving a basic income, those effects could be overshadowed by a habituation effect.