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 Originally Posted by boost
it should be clarified that the Kenya experiment was brought up to highlight the fact that workers do not seem to use the extra income as a substitute for earned income, but instead they use it to do more than they otherwise could.
This depends on the elasticity of their demand for different goods/services and on their utility, which really can be anywhere on their demand curves for goods/services depending on personal preference. OngBonga is an example of somebody who had a combination of those such that welfare replaced a significant portion of earned income. That doesn't mean it's true for all. It's different for everybody, though the general trend is that more unearned income reduces the demand for earned income.
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