ThereB次元官网网址檚 a stark contrast between public perception and the reality of how homeless people spend money, says a researcher who gave 50 homeless people in British Columbia $7,500 each to do with as they wished.
Instead of blowing the windfall on B次元官网网址渢emptation goodsB次元官网网址�, such as alcohol, drugs or cigarettes, they spent it on rent, clothing and food, the study led by University of British Columbia researcher Jiaying Zhao found.
The handout even generated a net saving of almost $800 per recipient, taking into account the costs that would have been involved in providing shelter accommodation.
B次元官网网址淭he goal is to do something about the homelessness crisis here in Canada, and specifically Vancouver because the current approaches are failing,B次元官网网址� said Zhao, who is working with policymakers on the problem. B次元官网网址淚 think this study provides very strong evidence in favour of a basic-income policy.B次元官网网址�
Researchers tracked the spending of the recipients for a year after they received the cash. They also followed a control group of 65 homeless people who did not get the handout.
The study, recently published in Proceedings of the National Academy of Sciences, found recipients spent 99 fewer days homeless, and spent 55 more days in stable housing. They also retained $1,160 more savings.
Zhao, an associate professor of psychology at UBC, said in an interview Wednesday that the researchers B次元官网网址渇ound a range of surprising positive benefits of a cash transfer.B次元官网网址�
Spending on B次元官网网址渢emptation goodsB次元官网网址� was no different between the recipients and the control group. However, the study did not include people with severe substance or alcohol use or mental health symptoms. Other criteria required participants to have been homeless for less than two years.
Participants were recruited from 22 homeless shelters across the B.C. Lower Mainland.
The study said that by reducing time in shelters, the cash transfer was B次元官网网址渃ost-effective.B次元官网网址�
It said the societal cost of a shelter stay in Vancouver was about $93 per night, and the fewer nights in shelters resulted in B次元官网网址渟ocietal cost savingsB次元官网网址� of $8,277 per recipient.
That represented a net saving of $777 compared to the cost of the handout.
B次元官网网址淎lternatively, freed-up shelter beds can be reallocated, so the benefits can trickle down by helping others avoid sleeping on the street,B次元官网网址� the study noted.
Zhao said the study was funded by a grant from the federal government and by private donors and foundations she declined to identify.
The researchers also conducted an online survey of about 1,100 U.S. residents to understand public perceptions of homeless peopleB次元官网网址檚 spending.
Vancouverites were not recruited because researchers were seeking a B次元官网网址渞epresentative voiceB次元官网网址� in North America, and Zhao said B次元官网网址減eople in Vancouver are more progressive than an average person in North America.B次元官网网址�
Survey respondents predicted that recipients of an unconditional $7,500 cash transfer would spend 81 per cent more on goods like alcohol, drugs and tobacco if they were homeless than if they were housed.
Zhao said most also predicted homeless people would spend $300 on such goods a month, while the study found those individuals only spent about $100 per month on such goods.
B次元官网网址淭hatB次元官网网址檚 an unfortunate, pervasive belief held by many people, so we wanted to actually examine or look at this bias,B次元官网网址� she said.
Zhao said her team found public perception can be challenged through effective messaging and policy changes.
B次元官网网址淚B次元官网网址檓 working with politicians and policymakers in Canada on bills like this,B次元官网网址� she said, referring to Bill S-233 that is currently before the Senate and aims to create a national framework for a guaranteed basic income to cover essential living expenses for people in Canada over age 17.
She said researchers are now replicating the study with a larger sample of people, and expanding it to other cities in Canada and the U.S.
READ ALSO:
READ ALSO:
