Abstract

Unconditional basic income should guarantee that all residents have sufficient material conditions for their existence. Compared to other existing social security programs, basic income is unique in its simplicity. It also supports the individuals' freedom of use of their disposible time. The article analyzes the expected impact of the introduction of an unconditional basic income on the labor market. It also compares basic income to other social security programs (wage subsidies, targeted social programs, a negative income tax and tax credits) on a theoretical level from the perspective of a recipient. Unconditional basic income's effects on labor supply would be rather negative. However, relative to other social security programs, unconditional basic income can guarantee a higher or the same utility level, but it may not motivate to participate in the labor market. Additional positives are transparency and lack of incentives to cheat. The prospect of lower administrative costs depends on the specific basic income scheme in question.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.