Who (Really) Wins with Basic Income: Personality and Values as Predictors of Happiness Trajectories

Universal Basic Income (UBI) might cause different effects in happiness depending on a person’s individual characteristics. In an online panel study of 573 basic income recipients in Germany, we examined whether personality traits (NEOAC) and certain personal values (self-direction, stimulation, hedonism, power, achievement, universalism, benevolence) predicted trajectories in happiness. Latent Growth Curve Analysis revealed that overall, most individuals experienced similar changes in happiness over time. For personality traits as predictors, higher neuroticism and openness to new experience were linked to growth in well-being. Additionally for personal values, significant growth in life satisfaction appeared to be associated with lower hedonism at the beginning of the study, and growth in well-being was related to higher levels of self-direction. In fact, none of the subgroups suffered in happiness. We conclude with implications and some important directions for further research regarding the effect of basic income on happiness.