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People kept working, became healthier while on basic income: report

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Participants in Ontario's prematurely cancelled basic income pilot project were happier, healthier and continued working even though they were receiving money with no-strings attached.

That's according to a new report titled Southern Ontario's Basic Income Experience, which was compiled by researchers at McMaster and Ryerson University, in partnership with the Hamilton Roundtable for Poverty Reduction.

The report shows nearly three-quarters of respondents who were working when the pilot project began kept at it despite receiving basic income.

That finding appears to contradict the criticism some levelled at the project, saying it would sap people's motivation to stay in the workforce or seek employment.

"They continued working," Wayne Lewchuk, an economics prof at McMaster University who was part of the research team told As It Happens.

"Many of those who continued working were actually able to move to better jobs, jobs that had a higher hourly wage, that had in general better working conditions, that they felt were more secure."

The three-year, $150-million program was scrapped by Ontario's PC government in July. At the time, then-social services minister Lisa MacLeod, said the decision was made because the program was failing to help people become "independent contributors to the economy."

On Wednesday a spokesperson for Todd Smith, the current minister of children, community and social services sent CBC a statement saying the government is focused on programs aimed at empowering "unemployed or underemployed" people across the province.

"A research project that included only 4,000 individuals was not an adequate solution for a province where almost two million people are living in poverty," wrote Christine Wood. "We are focused on solutions for Ontario that are practical and sustainable."

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