A wealthy tech mogul, concerned about how increasing automation might one day reduce the availability of employment

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A wealthy tech mogul, concerned about how increasing automation might one day reduce the availability of employment in some sectors of the economy, has decided to fund a randomized controlled trial of Universal Basic Income.

The trial will last three years, and study 1,000 people randomly assigned to a treatment or control arm. Five hundred people will be randomly assigned to receive $5,000 per year with no strings attached, and the other five hundred will receive only a small incentive to participate in the study. What are the advantages and pitfalls of such a research strategy in understanding the likely benefits and drawbacks of a Universal Basic Income implemented nationwide, for all citizens?

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