universal basic income
235457900
Universal Basic Income in Developing Countries: Pitfalls and Alternatives
We study the macroeconomic and social effects of Universal Basic Income (UBI) programs in a developing economy, comparing them with policies that condition cash transfers on household characteristics (CCT) We construct a dynastic heterogeneous agent model with human capital investment and choice of labor effort and calibrate it to Brazilian data. In the short run, UBI alleviates poverty and increases the welfare of the poor. Over time, however, income falls and poverty and inequality increase since investments in physical and human capital decrease along with labor supply. In most dimensions, CCT programs outperform UBI policies, largely due to school enrollment requirements.
Marcel Peruffo Pedro Cavalcanti Ferreira Andre Cordeiro Valerio
232299602
Why has the COVID 19 pandemic increased support for Universal Basic Income?
The onset of the 2020 global COVID 19 pandemic led to a marked increase in positive discussion of Universal Basic Income (UBI) in political and media circles. However, we do not know whether there was a corresponding increase in support for the policy in the public at large, or why. Here, we present three studies carried out during 2020 in UK and US samples. In study 1 n 802, April 2020) people expressed much stronger support for a UBI policy for the times of the pandemic and its aftermath than for normal times. This was largely explained by the increased importance they attached, in the pandemic context, to a system that is simple and efficient to administer, and that reduces stress and anxiety in society. In study 2 n 400, May 2020) we pitted UBI against a conditional targeted social transfer system. Preferences for UBI were stronger for pandemic times than for normal times. This was partially explained by a number of perceived advantages, such as simplicity of administration and suitability for a changing world. In study 3 n 397, September 2020) we found that the headline results of studies 1 and 2 persisted six months after the onset of the pandemic, albeit with attenuated effect sizes. Our results illustrate how a changing social and economic situation can bring about markedly different policy preferences, through changes in citizens' perceptions of what is currently important.
Daniel Nettle Elliott Johnson Matthew Thomas Johnson Rebecca Saxe
232170512
A Universal Basic Income For Brazil: Fiscal and Distributional Effects of Alternative Schemes
The outbreak of the Covid 19 pandemic has led to an increasing interest in Universal Basic Income (UBI) proposals as it exposed the inadequacy of traditional welfare systems to provide basic financial security to a large share of the population. In this paper, we use a static taxbenefit microsimulation model to analyse the fiscal and distributional effects of the hypothetical implementation in Brazil of alternative UBI schemes which partially replace the existing taxtransfer system. The results indicate that the introduction of a UBI/Flat Tax sytem in the country could be both extremely effective in reducing poverty and inequality and economically viable.
Rozane Bezerra de Siqueira Jose Ricardo Nogueira
235344323
A Quantitative Evaluation of Universal Basic Income
We provide a quantitative evaluation of the impact of Universal Basic Income (UBI) on macroeconomic aggregates, inequality and welfare, exploring different levels of UBI generosity, paired with different strategies to finance it. We find that different levels of UBI can generate welfare improvements in the long run, and that more generous UBI requires financing through consumption taxes. While welfare improvements are possible for individuals entering the steady state, the analysis of the transitional dynamics suggest generalized welfare losses for existing individuals, casting doubt on the desirability of such reforms. These losses are increasing in the level of generosity of UBI.
Juan Carlos Conesa Qian Li
234555381
A time for universal basic income?
Donna Lu
228843069
The introduction of a universal basic income
Andrew Mackley Francis Hobson Philip Loft Steven Kennedy
230526742
Designing trials of Universal Basic Income for health impact: identifying interdisciplinary questions to address.
BACKGROUND A large body of evidence indicates the importance of upstream determinants to health. Universal Basic Income (UBI) has been suggested as an upstream intervention capable of promoting health by affecting material, biopsychosocial and behavioural determinants. Calls are emerging across the political spectrum to introduce an emergency UBI to address socioeconomic insecurity. However, although existing studies indicate effects on health through cash transfers, UBI schemes have not previously been designed specifically to promote health. METHODS In this article, we scope the existing literature to set out a set of interdisciplinary research challenges to address in designing a trial of the effectiveness of UBI as a population health measure. RESULTS We present a theoretical model of impact that identifies three pathways to health impact, before identifying open questions related to regularity, size of payment, needs based supplements, personality and behaviour, conditionality and duration. CONCLUSIONS These results set, for the first time, a set of research activities required in order to maximize health impact in UBI programmes.
Journal of public health
Matthew Thomas Johnson Elliott Johnson Daniel Nettle Kate E Pickett
224982548
Downscaling consumption to universal basic income level falls short of sustainable carbon footprint in Finland
Abstract Human economic activities and following carbon emissions have been recognized to be a real threat to the environment. The current levels of consumption based carbon footprints in all developed economies grossly exceed the sustainable level. Scientists have concluded that in addition to technological solutions, downscaling of consumption and far reaching changes in lifestyles will be needed to achieve environmental sustainability. In this study, we provide a tangible real world example that reveals the scale of the needed change from a perspective of a European welfare state citizen. Universal basic income (UBI) represents an income that is just enough to fulfil basic needs, such as food, shelter, and medication. In our case country, Finland, UBI is in practice at the same level as the income of the lowest income decile. The purpose of this study is to present and analyse the carbon footprints at a consumption level that corresponds to UBI. We compare the carbon footprints at this low income level to average Finnish carbon footprints and discuss their sustainability in the light of global carbon budgets. We use an input output approach based on the Finnish ENVIMAT model. The average carbon footprint at the UBI level is 4.8 tCO2 eq and it focuses on necessities. It's significantly lower than the average carbon footprint in Finland, 9.4 tCO2 eq, but still far from the level compatible with the current climate change mitigation targets. The results emphasize how challenging it is to find true low carbon solutions for living in affluent countries. Lifestyle changes and technological leaps need to be combined and fostered by legislation.
Salla Marikki Kalaniemi Juudit Ottelin Jukka Heinonen Seppo Junnila
229293200
Robots, labor markets, and universal basic income
Automation is a big concern in modern societies in view of its widespread impact on many socioeconomic issues including income, jobs, and productivity. While previous studies have concentrated on determining the effects on jobs and salaries, our aim is to understand how automation affects productivity, and how some policies, such as taxes on robots or universal basic income, moderate or aggravate those effects. To this end, we have designed an experiment where workers make productive effort decisions, and managers can choose between workers and robots to do these tasks. In our baseline treatment, we measure the effort made by workers who may be replaced by robots, and also elicit firm replacement decisions. Subsequently, we carry out treatments in which workers have a universal basic income of about a fifth of the workers' median wages, or where there is a tax levy on firms who replace workers by robots. We complete the picture of the impact of automation by looking into the coexistence of workers and robots with part time jobs. We find that the threat of a robot substitution does not affect the amount of effort exerted by workers. Also, neither universal basic income nor a tax on robots decrease workers' effort. We observe that the robot substitution tax reduces the probability of worker substitution. Finally, workers that benefit from managerial decisions to not substitute them by more productive robots do not increase their effort level. Our conclusions shed light on the interplay of policy and workers behavior under pervasive automation.
Antonio Cabrales Penelope Hernandez Angel Sanchez
229463367
Financing Universal Basic Income: Eliminating Poverty and Bolstering the Middle Class While Addressing Inequality, Economic Rents, and Climate Change
Abstract Universal Basic Income (UBI) can serve as a beneficial public policy to reduce poverty and inequality, yet a great challenge is how to fund it. This article offers a roadmap for fully funding UBI in a manner that: eliminates poverty; bolsters the middle class; eliminates the stigma and government bureaucracy of social welfare programs; reduces ever expanding inequality; initiates a path to meeting climate change goals; reduces speculation; and increases fairness and opportunity in the tax code. As stand alone policies, these revenue proposals are valuable correctives in their own right. If the entire package of UBI and funding sources were in effect, society (and American capitalism) would be on a more stable, equitable, and environmentally sustainable footing.
Drew Riedl