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(Un)conditional Basic Income and Participation Income: A Review of Its Micro- and Macro-Economic Effects

Author

Listed:
  • Melline A. Somers

    (Maastricht University)

  • Ruud J. A. Muffels

    (Tilburg University)

  • Annemarie Kuenn-Nelen

    (Maastricht University)

Abstract

This paper reviews 41 studies on the micro and macro-economic effects of (Un)conditional Basic Income (UBI/CBI), Negative Income Tax, and Participation Income related programmes in middle- and high-income countries. These programmes aim to provide a Guaranteed Minimum Income either for the population at large or for specific groups such as the unemployed. Compared to previous review studies in the field, it advances by examining the broader (un)intended effects on income, (mental) health, subjective well-being and social outcomes. We find that recent US/Canada studies re-estimating the negative labour supply effects found in older studies report much lower and even insignificant estimates. The studies on European programmes and experiments show slightly more positive but still mostly insignificant labour supply effects. However, more positive and significant effects on subjective well-being, mental health, and trust were found, particularly in recent European studies. Similar effects were observed in recent Canadian and US studies.

Suggested Citation

  • Melline A. Somers & Ruud J. A. Muffels & Annemarie Kuenn-Nelen, 2025. "(Un)conditional Basic Income and Participation Income: A Review of Its Micro- and Macro-Economic Effects," De Economist, Springer, vol. 173(1), pages 205-244, March.
    • Handle: RePEc:kap:decono:v:173:y:2025:i:1:d:10.1007_s10645-024-09447-1
    DOI: 10.1007/s10645-024-09447-1
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    More about this item

    Keywords

    Basic Income; Participation Income; Negative Income Tax; Micro-economic effects; Macro-economic effects; Labour supply; Poverty; Income inequality; Health; Subjective well-being; Trust; Public policy;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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