Abstract
This article assesses the pros and cons of a basic income grant and estimates the financial cost of paying a similar benefit to very specific groups in Peru. This is an old concept in the economic literature and is associated with a “negative income tax”. A universal basic income grant can be an adequate instrument to smooth consumption and distribute some purchasing power to the poor. The shift in effective demand after paying a basic income can have important multiplier effects on small local markets and on the creation of work opportunities. The exercise suggests that the implementation of such instrument should be gradual and accompanied by a substantial increase in general government revenues. Since a basic income policy can have a non-trivial positive impact in the reduction of poverty and in increasing both equity and social cohesion, its appropriateness should be given enough thought.
Highlights
A Basic Income Policy For PeruEl presente artículo analiza el concepto de “renta básica” y evalúa sus ventajas y desventajas
Vulnerability to income insecurity, disease, social and political exclusion, violence and crime is the context in which the majority of the people live in many developing countries
Only half of them have running water in their dwellings, less than one quarter has a bathroom, and 84 percent of residents in their neighbourhoods are in the informal sector (94 percent in rural areas) (INEI 2002: 44 and 48)
Summary
El presente artículo analiza el concepto de “renta básica” y evalúa sus ventajas y desventajas. La “renta básica” es un viejo concepto en la literatura económica –también conocido como “impuesto negativo”. El impacto sería no trivial en los sectores pobres y el instrumento podría diseñarse de tal manera que no se pague beneficio alguno a preceptores de ingresos medianos y altos. La conclusión principal es que en un país como el Perú, la introducción de este beneficio debería ser gradual y basarse en un incremento sustancial de los ingresos fiscales. Se debe prestar atención a este instrumento, en vista de que puede tener un impacto no significativo para reducir la pobreza e incrementar tanto la equidad como la cohesión sociales
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