Does guaranteed income facilitate wealth and credit building among Black Households in Georgia?

Guaranteed income (GI), an intervention that provides a periodic, unconditional cash payment, is proposed as a method to address racial wealth disparities. However, little research explores GI’s effects on asset development and credit building, which are essential tools in combating racial wealth inequality. This project will examine two experimental GI studies in Georgia. The first study randomly enrolled 654 Black women to receive a GI for two years, with participants randomized into one of two disbursement models. The second study, embedded in a non-profit serving unhoused individuals, will randomly assign 200 current clients to receive either standard housing support or housing support plus $400/month for one year.

The research team will investigate:

1. To what extent do GI payments improve short and long-term savings for Black families with low incomes?
2. To what extent do GI payments facilitate credit building among Black families with low incomes?
3. To what extent do GI payments targeting Black families with low incomes help address racial wealth and credit gaps?

This study will contribute to research on GI and approaches to alleviate racial disparities in several ways:

1. The two GI pilots focus explicitly on Black women and unhoused individuals– relatively novel target populations for GI studies.
2. The experimental design of this study allows the research team to advance knowledge of optimal GI payment structures.
3. The studies incorporate diverse datasets, allowing the research team to assess the impact of GI programs on short and long-term savings and credit and debt outcomes.