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Basic Income and a Public Job Offer: Complementary Policies to Reduce Poverty and Unemployment

Author

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  • FitzRoy, Felix

    (University of St. Andrews)

  • Jin, Jim

    (University of St. Andrews)

Abstract

Unconditional basic income, or a job guarantee by government as employer-of-last-resort, are usually discussed as alternative policies, though the first does not provide the benefits of an earned income and a good job to the growing numbers in precarious- or under-employment, while the second fails to assist those who would prefer to remain in self-employment or particular occupations if their incomes were higher, rather than to work under a JG. Furthermore a JG cannot support those who are unwilling to work. We argue here that the only cost-effective policy for comprehensive welfare is a combination of a modest basic income with job offer by local authorities below the minimum wage.

Suggested Citation

  • FitzRoy, Felix & Jin, Jim, 2017. "Basic Income and a Public Job Offer: Complementary Policies to Reduce Poverty and Unemployment," IZA Policy Papers 133, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izapps:pp133
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    References listed on IDEAS

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    1. Stabilization policy with ignorance
      by chris in Stumbling and Mumbling on 2018-11-08 14:00:10

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    Cited by:

    1. Nur Feriyanto & Dityawarman El Aiyubbi & Achmad Nurdany, 2020. "The Impact of Unemployment, Minimum Wage, and Real Gross Regional Domestic Product on Poverty Reduction in Provinces of Indonesia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(10), pages 1088-1099, October.

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    More about this item

    Keywords

    unemployment; poverty; job guarantee; basic income;
    All these keywords.

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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