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Poverty Solutions Associate Dean Kristin Seefeld (left) and graduate student research assistant Emily Schupp Parker (center) visit Ann Arbor at the Green Fair in downtown Ann Arbor on September 22, 2023. Share information about guaranteed income to grow. (Lauren Slagter | Poverty Solutions)
Contact: Lauren Slagter lslag@umich.edu
ANN ARBOR – 100 Ann Arbor entrepreneurs, gig workers and other low-income independent workers received their first two income checks of $528. Income Guarantees Ann Arbor’s Growth (GIG A2) Pilot Program. Payments will begin in January and continue monthly until the end of 2025.
Poverty Solutions at the University of Michigan will evaluate the pilot program to determine if the monthly payments are:
- Positively contribute to the social determinants of health of participants, particularly through improved housing, food and transport security, improved physical and mental health and access to care, and increased access and quality of childcare.
- We help small businesses and entrepreneurs stabilize and/or grow their businesses.and
- Give entrepreneurs the time and resources to focus on their business.
An additional 100 low-income Ann Arbor entrepreneurs without monthly payments were enrolled in the study group to support the results of this pilot study.
“I would like to give a special thanks to those who participated in the research group. ” said the study’s principal investigator, Associate Professor of Social Work and Public Policy and Associate Professor of Poverty Solutions at UM. said Kristin Seefeldt.
“The findings will inform policy makers about the effectiveness of cash assistance programs and better ways to provide aid to those in need,” Seefeld added.
Funding for this pilot program is provided by the federal American Rescue Plan Act (ARPA) through the City of Ann Arbor and the Ann Arbor Area Community Foundation (AAACF).
Mayor Christopher Taylor said, “We are pleased to see this important program up and running and appreciate our partnership with the University of Michigan to make it happen.” “The idea of guaranteed income is past time. We are thrilled that Ann Arbor can support these individuals and their families, and that we are working with researchers to answer important questions about the effectiveness and impact of these programs. I am proud to be able to do this.”
“We are inspired by the opportunity to join forces in this important effort to support entrepreneurs and small business owners in need,” said Shannon Polk, president and CEO of the Ann Arbor Area Community Foundation. “It has been done,” he said. “By leveraging research data from the University of Michigan to provide guaranteed income, we are not only supporting families, but also embracing the transformative impact of collaborative community partnerships.”
Additional support for this pilot program will be provided by Steady, a payments distributor. research assistants from UM’s School of Social Work, Ford School of Public Policy, and School of Public Health; many community organizations at the Ann Arbor and state level;
This graph shows the racial demographics of GIG A2 participants and Ann Arbor residents. Graphic: Dana Schau
GIG A2’s 200 participants are entrepreneurs, small business owners, and low-income gig workers living in Ann Arbor. For this pilot, low income means he is within 225% of the federal poverty line, or within $44,370 for a two-person household. GIG A2 participants were randomly selected to reflect the demographics of of The eligible application pool is approximately 500 people. The demographic breakdown of his eligible GIG A2 applicants is as follows:
- Race/Ethnicity: 41% of participants identified as White, 39% as Black, and 20% indicated another race or ethnicity.
- Education: 55% of participants do not have a bachelor’s degree, while 45% have a bachelor’s degree or higher.
- Type of work: 60% of participants do not use platforms or apps for their entrepreneurial work, while 40% of participants use platforms or apps such as Uber, DoorDash, TaskRabbit, Fiverr, YouTube, etc. I am. GIG A2 participants work in the following areas: food and events, arts and entertainment, personal and health care services, maintenance work, and many other types of jobs.
Over the next two years, GIG A2 participants will take part in surveys and interviews as part of the research study. GIG A2 participants who do not receive guaranteed income payments will receive a small stipend starting in March from funds donated by AAACF to participate in research studies until the end of 2025.
To receive our quarterly email newsletter with the latest information on GIG A2, register here.
Press release written by Emily Shupp Parker
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