This study shares the same target population, intent and framework of two preceding studies, conducted in 2019 and 2020, respectively, that analyzed the policy effects of the Youth Basic Income Program (YBIP) on youth in Gyeonggi Province on the basis of both the ex-ante and ex-post surveys. This study, in particular, concerns the effects of the YBIP over the period spanning April 1, 2020, through March 29, 2021, comparing youth’s experiences before (the first quarter of 2020) and after (the first quarter of 2021) the YBIP.
Much of this study examines the results of a quantitative analysis, comparing the experiences of the treatment and control groups. Whereas the control group used for the two previous studies consisted exclusively of 24-year-olds living in regions other than Gyeonggi Province, this study compares the experiences of three control groups, i.e., 24-year-olds living outside of Gyeonggi, persons younger (aged 21 to 23 years old) than the target group of the YBIP living in Gyeonggi, and persons older (aged 26 to 28 years old) than the target group living in Gyeonggi.
The comparative analysis was designed to determine whether there were significant differences in the experiences of youth who received youth basic income support and youth who did not receive such support. This study appropriates the sample design of the original study conducted in 2019. Of the eligible young persons who applied to the YBIP in the first quarter of 2020, 40,958 responded to the ex-ante survey and 14,083 to the ex-post survey. As for the control groups, the numbers of persons responding to the ex-ante and ex-post surveys were: 5,216 and 2,369, respectively, among 24-yearolds outside Gyeonggi; 5,214 and 2,368, respectively, among youth aged 21 to 23 living in Gyeonggi; and 5,166 and 2,540, respectively, among youth aged 26 to 28 living in Gyeonggi.
The quantitative analysis at the center of this study is based on the results of the structuralized questionnaires answered by the treatment and control groups. The questionnaires for the ex-ante and ex-post surveys are mostly the same except for changes in the wording that reflect the passage of time. The questionnaires were so designed so as to make it possible to gather panel data, as was done in the preceding studies.
This study presents the results of t-tests and difference-in-difference (DID) analysis. The t-tests confirmed that the YBIP has had positive effects in terms of (1) the motivation to work in general, (2) the motivation of unemployed beneficiaries to work, (3) income-generating activities, (4) self-development, (5) optimistic outlook about life, (6) the percentage of personal expenses spent on groceries, (7) savings, (8) perception of one’s financial situation, (9) trust in people other than oneself, law and institutions, and the media, (10) overall life satisfaction, (11) one’s valuation of one’s work, (12) emotional wellbeing (either gains in the sense of happiness or decreases in depression, anxiety and worries), (13) overall personal health and diet, (14) willingness to spend more time on various activities of life, and (15) imagination, hope, optimism, and resilience regarding one’s own life and future.
The DID analysis (and the cross-sectional regression analysis conducted as a supplement) similarly confirmed that the YBIP has had wide-ranging positive effects on benefitting youth. Compared to 24-year-olds living outside of Gyeonggi Province, the YBIP beneficiaries fared better in terms of happiness, life satisfaction, sense of self-worth, efforts for health, health, frequency of physical exercises, diet, trust, “dream capital,” imagination, hope, optimism, and resilience. Compared to the other age groups of youth in Gyeonggi, YBIP beneficiaries fared better in terms of happiness and efforts for health. Compared to 21-to-23-year-olds in Gyeonggi in particular, the beneficiaries had a more positive attitude toward tax increases and the ability to do chores. Compared to 26-to-28-year-olds, the beneficiaries also showed a more positive attitude toward universal basic income, “dream capital,” working hours, self-development/learning/physical exercises, and investing in self-development/learning.
The cross-sectional analysis of the different groups’ ex-post survey results also revealed that the YBIP had a positive effect on youth’s happiness, efforts for health, trust, gender perception, autonomy, influence on others in decision-making, desire for a more equal society, perception of universal welfare, attitude toward tax increases, perception of universal basic income, “dream capital,” and investing in self-development/learning.
These quantitative tests, in other words, generally confirm that the YBIP has had diverse positive effects on eligible youth.