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Modelling the Time Allocation Effects of Basic Income

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  • Palermo Kuss Ana Helena

    (Department of Economic Policy and Constitutional Economic Theory, Albert-Ludwigs-Universität Freiburg. Wirtschafts- und Verhaltenswissenschaftliche Fakultät, Freiburg, Germany)

  • Neumärker K. J. Bernhard

    (Department of Economic Policy and Constitutional Economic Theory, Albert-Ludwigs-Universität Freiburg. Wirtschafts- und Verhaltenswissenschaftliche Fakultät, Freiburg, Germany)

Abstract

Most of the economic models on basic income account just for pecuniary forms of work, i. e. “time spent making money”, in employment. This restriction is a drawback of these analyses and of the standard economic labor supply model itself. If one wants to understand the potential effects of basic income on individual and social welfare, one should not restrict observation to the pecuniary uses of time. The objective of this contribution is to rethink the meaning of work usually applied in economic models, based on contributions of other social scientists. This reassessment is undertaken through the development of a microeconomic model, which discusses the effects of basic income on time use and interprets work not just as a source of income, but also of non-pecuniary benefits. Further, we disentangle the usual work-leisure dichotomy in two other ones (paid and unpaid time/unpaid work and leisure).

Suggested Citation

  • Palermo Kuss Ana Helena & Neumärker K. J. Bernhard, 2018. "Modelling the Time Allocation Effects of Basic Income," Basic Income Studies, De Gruyter, vol. 13(2), pages 1-15, December.
    • Handle: RePEc:bpj:bistud:v:13:y:2018:i:2:p:15:n:2
    DOI: 10.1515/bis-2018-0006
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