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Is unconditional basic income a viable alternative to other social welfare measures?

Author

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  • Ugo Colombino

    (University of Torino, Italy, and IZA, Germany)

Abstract

Automation and globalization have brought about a tremendous increase in productivity, but also accelerated job destruction, systemic risks, and greater income inequality. Current social policies may not be adequate for achieving the goals of redistributing the gains from automation and globalization, providing efficient buffers against economic shocks, and advancing the reallocation of jobs and skills. Under certain circumstances, an unconditional basic income might be a better alternative for achieving those goals. It is simple, transparent, and has low administrative costs, though it may require higher taxes.

Suggested Citation

  • Ugo Colombino, 2015. "Is unconditional basic income a viable alternative to other social welfare measures?," IZA World of Labor, Institute of Labor Economics (IZA), pages 128-128, February.
    • Handle: RePEc:iza:izawol:journl:y:2015:n:128
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    References listed on IDEAS

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    1. Atkinson, A. B., 1996. "Public Economics in Action: The Basic Income/Flat Tax Proposal," OUP Catalogue, Oxford University Press, number 9780198292166.
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    3. Horstschräer, Julia & Clauss, Markus & Schnabel, Reinhold, 2010. "An unconditional basic income in the family context: Labor supply and distributional effects," ZEW Discussion Papers 10-091, ZEW - Leibniz Centre for European Economic Research.
    4. Rolf Aaberge & Ugo Colombino & Steinar Strøm, 2004. "Do more equal slices shrink the cake? An empirical investigation of tax-transfer reform proposals in Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(4), pages 767-785, December.
    5. Nicholas-James Clavet & Jean-Yves Duclos & Guy Lacroix, 2013. "Fighting Poverty: Assessing the Effect of Guaranteed Minimum Income Proposals in Quebec," Canadian Public Policy, University of Toronto Press, vol. 39(4), pages 491-516, December.
    6. Widerquist, Karl, 2005. "A failure to communicate: what (if anything) can we learn from the negative income tax experiments?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(1), pages 49-81, February.
    7. John Kay, 2017. "The Basics of Basic Income," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 52(2), pages 69-74, March.
    8. Ugo Colombino, 2015. "Five Crossroads on the Way to Basic Income. An Italian Tour," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 1(3), pages 353-389, November.
    9. James Bryan, 2005. "Have the 1996 welfare reforms and expansion of the earned income tax credit eliminated the need for a basic income guarantee in the US?," Review of Social Economy, Taylor & Francis Journals, vol. 63(4), pages 595-611.
    10. Handler Joel & Babcock Amanda Sheely, 2006. "The Failure of Workfare: Another Reason for a Basic Income Guarantee," Basic Income Studies, De Gruyter, vol. 1(1), pages 1-22, June.
    11. Rosanna Scutella, 2004. "Moves to a Basic Income-Flat Tax System in Australia: Implications for the Distribution of Income and Supply of Labour," Melbourne Institute Working Paper Series wp2004n05, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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    Citations

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    Cited by:

    1. Ghimire, Ramesh & Skinner, Jim & Carnathan, Mike, 2020. "Who perceived automation as a threat to their jobs in metro Atlanta: Results from the 2019 Metro Atlanta Speaks survey," Technology in Society, Elsevier, vol. 63(C).
    2. James Browne & Herwig Immervoll, 2017. "Mechanics of replacing benefit systems with a basic income: comparative results from a microsimulation approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(4), pages 325-344, December.
    3. Julie Linthorst & André de Waal, 2020. "Megatrends and Disruptors and Their Postulated Impact on Organizations," Sustainability, MDPI, vol. 12(20), pages 1-25, October.
    4. Islam, Nizamul & Colombino, Ugo, 2018. "The case for NIT+FT in Europe. An empirical optimal taxation exercise," Economic Modelling, Elsevier, vol. 75(C), pages 38-69.
    5. Ben Vermeulen & Jan Kesselhut & Andreas Pyka & Pier Paolo Saviotti, 2018. "The Impact of Automation on Employment: Just the Usual Structural Change?," Sustainability, MDPI, vol. 10(5), pages 1-27, May.
    6. Ioana Marinescu, 2018. "No Strings Attached: The Behavioral Effects of U.S. Unconditional Cash Transfer Programs," NBER Working Papers 24337, National Bureau of Economic Research, Inc.
    7. Colombino, Ugo & Islam, Nizamul, 2022. "The "Robot Economy" and Optimal Tax-Transfer Reforms," IZA Discussion Papers 15198, Institute of Labor Economics (IZA).
    8. Nizamul Islam & Ugo Colombino, 2018. "The case for negative income tax with flat tax in Europe. An empirical optimal taxation exercise," Working Papers 454, ECINEQ, Society for the Study of Economic Inequality.
    9. Magnani, Riccardo & Piccoli, Luca, 2020. "Universal basic income with flat tax reform in France," Journal of Policy Modeling, Elsevier, vol. 42(2), pages 235-249.
    10. Stefan Angel, 2022. "Dimensionen von Digitalisierung der Sozialpolitik in Österreich. Ein konzeptioneller Diskussionsbeitrag," WIFO Working Papers 642, WIFO.
    11. Stefano Staffolani, 2023. "Deprivazione, povert? e redistribuzione del reddito," PRISMA Economia - Societ? - Lavoro, FrancoAngeli Editore, vol. 2023(1-2), pages 47-69.
    12. Ugo Colombino & Nizamul Islam, 2022. "The “Robot Economy†and optimal tax-transfer reforms," CHILD Working Papers Series 101 JEL Classification: H, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    13. Ugo Colombino & Nizamul Islam, 2021. "Global and digitalised economy, new labour demand scenarios and optimal tax-transfer reforms," CHILD Working Papers Series 90 JEL Classification: H2, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    14. Tim Jackson & Peter A Victor, 2021. "Confronting inequality in the “new normal”: Hyper‐capitalism, proto‐socialism, and post‐pandemic recovery," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(3), pages 504-516, May.
    15. Hertog, Steffen, 2020. "Reforming wealth distribution in Kuwait: estimating costs and impacts," LSE Research Online Documents on Economics 105564, London School of Economics and Political Science, LSE Library.
    16. Spermann Alexander, 2017. "Basic Income in Germany: Proposals for Randomised Controlled Trials using Nudges," Basic Income Studies, De Gruyter, vol. 12(2), pages 1-9, December.
    17. Gassmann, Franziska & Martorano, Bruno, 2019. "The future of work and its implications for social protection and the welfare state," MERIT Working Papers 2019-039, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    18. Rafael Munoz de Bustillo Llorente, 2019. "Key challenges for the European Welfare States," JRC Working Papers on Labour, Education and Technology 2019-04, Joint Research Centre.
    19. Tromp, Alexander, 2017. "The Effects of a Hybrid Negative Income Tax on Poverty and Inequality: a Microsimulation on the UK and Italy," EUROMOD Working Papers EM15/17, EUROMOD at the Institute for Social and Economic Research.

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    More about this item

    Keywords

    basic income; means testing; incentives; redistribution; globalization; automation;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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