A modest basic income can benefit a poor majority

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2024
Volume: 224
Issue: C
Pages: 537-547

Authors (3)

Amir, Rabah (University of Iowa) FitzRoy, Felix (not in RePEc) Jin, Jim (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Given a general utility and income distribution and positive unemployment benefits, we analyze the impact of a universal basic income (UBI) financed by an income tax and reducing unemployment benefits. With extensive margins only and identical fixed costs of work, we show that UBI can benefit a poor majority. Plausible conditions can ensure similar results with different fixed costs. With both extensive and intensive margins but identical fixed costs, a modest UBI can still benefit a poor majority provided the income weighted tax elasticity of labor supply from intensive margins is less than the non-employment rate, which is usually true.

Technical Details

RePEc Handle
repec:eee:jeborg:v:224:y:2024:i:c:p:537-547
Journal Field
Theory
Author Count
3
Added to Database
2026-01-24