The Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund

Since 1982, all Alaskan residents have received a yearly cash dividend from the Alaska Permanent Fund. Using Current Population Survey and synthetic control method, this paper shows that had no effect on employment increased part-time work by 1.8 percentage points (17 percent). A calibration of microeconomic macroeconomic effects suggests empirical results are consistent with stimulating local economy—a general equilibrium effect. Nontradable sectors more positive response than tradable sectors. Overall, suggest universal permanent transfer does not significantly decrease aggregate employment. (JEL E24, H24, H75, I38, J22, R23)