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The potential of universal basic income schemes to mitigate shocks: Comparing the performance of universal basic income in Uganda and Zambia during COVID-19

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Listed:
  • Enrico Nichelatti
  • Maria Jouste
  • Pia Rattenhuber

Abstract

The debate over universal basic income (UBI) has gained traction in the developing world in recent years. We analyse the effects of four UBI schemes on poverty and inequality measures during normal times and times of crisis in Uganda and Zambia. We use static microsimulation models and nationally representative household surveys for each country. Our results show that in Zambia, where the existing social protection benefits have more extensive coverage, the least generous UBI benefit leads to higher poverty and inequality compared to existing benefits.

Suggested Citation

  • Enrico Nichelatti & Maria Jouste & Pia Rattenhuber, 2024. "The potential of universal basic income schemes to mitigate shocks: Comparing the performance of universal basic income in Uganda and Zambia during COVID-19," WIDER Working Paper Series wp-2024-21, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2024-21
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    References listed on IDEAS

    as
    1. Hanna, Rema & Olken, Benjamin A., 2018. "Universal Basic Incomes vs. Targeted Transfers: Anti-Poverty Programs in Developing Countries," Working Paper Series rwp18-024, Harvard University, John F. Kennedy School of Government.
    2. Maura Francese & Delphine Prady, 2018. "Universal Basic Income: Debate and Impact Assessment," IMF Working Papers 2018/273, International Monetary Fund.
    3. Adnan Abdulaziz Shahir & Ravi Kanbur & Jukka Pirttilä & Pia Rattenhuber, 2023. "Comparing the poverty-reduction efficiency of targeted versus universal benefits amid crises," WIDER Working Paper Series wp-2023-100, World Institute for Development Economic Research (UNU-WIDER).
    4. Abhijit Banerjee & Paul Niehaus & Tavneet Suri, 2019. "Universal Basic Income in the Developing World," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 959-983, August.
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    More about this item

    Keywords

    Universal basic income; COVID-19; Microsimulation; Poverty; Inequality;
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