Journal article
A modest basic income can benefit a poor majority
Journal of economic behavior & organization, Vol.224, pp.537-547
08/2024
DOI: 10.1016/j.jebo.2024.05.019
Abstract
Given a general utility and income distribution and positive unemployment benefits, we analyze the impact of a universal basic income (UBI) financed by an income tax and reducing unemployment benefits. With extensive margins only and identical fixed costs of work, we show that UBI can benefit a poor majority. Plausible conditions can ensure similar results with different fixed costs. With both extensive and intensive margins but identical fixed costs, a modest UBI can still benefit a poor majority provided the income weighted tax elasticity of labor supply from intensive margins is less than the non-employment rate, which is usually true.
Details
- Title: Subtitle
- A modest basic income can benefit a poor majority
- Creators
- Rabah Amir - University of Iowa, USAFelix FitzRoy - University of St AndrewsJim Jin - University of St Andrews
- Resource Type
- Journal article
- Publication Details
- Journal of economic behavior & organization, Vol.224, pp.537-547
- DOI
- 10.1016/j.jebo.2024.05.019
- ISSN
- 0167-2681
- eISSN
- 1879-1751
- Publisher
- Elsevier B.V
- Language
- English
- Date published
- 08/2024
- Academic Unit
- Economics
- Record Identifier
- 9984650060002771
Metrics
27 Record Views