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Testing preferences for basic income

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  • Palermo Kuss, Ana Helena

Abstract

Inspired by Fröhlich and Oppenheimer (1990), an experimental survey in the lab was designed to find out if preferences for three different redistribution schemes differ under a veil of ignorance. The three schemes are a stylized version of the status quo German welfare state (A), a control scheme without income taxation and redistribution (B) and one in which a flat tax-financed basic income is paid to all (C). Furthermore, the study investigates whether the introduction of a basic income induces a decrease in the time allocation to paid and unpaid work. The results point to no significant difference in allocated working hours between A and C. Concerning preferences, access to information on implications of schemes and self-interest played a central role in their definition.

Suggested Citation

  • Palermo Kuss, Ana Helena, 2019. "Testing preferences for basic income," The Constitutional Economics Network Working Papers 01-2019, University of Freiburg, Department of Economic Policy and Constitutional Economic Theory.
    • Handle: RePEc:zbw:cenwps:012019
    as

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    File URL: https://www.econstor.eu/bitstream/10419/200184/1/166801811X.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    lab experiment; basic income; welfare state; Germany; time allocation; constitutional economics; labor supply;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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