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Distributional and welfare effects of replacing monetary benefits with Universal Basic Income in Spain

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  • Badenes-Plá, Nuria
  • Gambau-Suelves, Borja
  • Navas Román, María

Abstract

This papers quantifies the redistributive effects on progressivity, poverty and welfare, that would occur if the monetary benefits currently in place in the Spanish system were to be replaced by a neutral alternative in terms of spending, granting a universal basic income (UBI) to everyone. We have calculated two scenarios: one in which the benefit system is replaced by a basic income, and another in which retirement pensions are maintained, with the rest of monetary benefits being distributed via a UBI. The simulations are carried out using EUROMOD. The implementation of a UBI, even a very radical one that eliminates the existing benefits system, could be: economically sustainable; as redistributive as the current one; almost as poverty reducing as the one in force (or more in some dimensions), and a generator of greater welfare.

Suggested Citation

  • Badenes-Plá, Nuria & Gambau-Suelves, Borja & Navas Román, María, 2019. "Distributional and welfare effects of replacing monetary benefits with Universal Basic Income in Spain," EUROMOD Working Papers EM8/19, EUROMOD at the Institute for Social and Economic Research.
    • Handle: RePEc:ese:emodwp:em8-19
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    3. E. Mabel & Dennis Milner, 1918. "Scheme for a State Bonus (1918)," Palgrave Macmillan Books, in: John Cunliffe & Guido Erreygers (ed.), The Origins of Universal Grants, chapter 12, pages 121-133, Palgrave Macmillan.
    4. Mill, John Stuart, 1848. "Principles of Political Economy (I): Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 1, number mill1848-1.
    5. Mill, John Stuart, 1848. "Principles of Political Economy (V): On the Influence of Government," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 5, number mill1848-5.
    6. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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    Cited by:

    1. Elise Aerts; & Ive Marx; & Gerlinde Verbist;, 2023. "Not That Basic: How Level, Design and Context Matter for the Redistributive Outcomes of Universal Basic Income," Working Papers 2303, Herman Deleeck Centre for Social Policy, University of Antwerp.
    2. Aerts, Elise & Marx, Ive & Verbist, Gerlinde, 2023. "Not That Basic: How Level, Design and Context Matter for the Redistributive Outcomes of Universal Basic Income," IZA Discussion Papers 15952, Institute of Labor Economics (IZA).

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