Abstract
With growing interest in a universal basic income (BI), we provide new results for a majority to benefit from replacing (some) unemployment benefits with BI. Given any income distribution and an extensive margin, such a replacement always benefits those remaining unemployed, raises utilitarian welfare, and benefits a poor - or even a working - majority. Similar results follow with involuntary unemployment, and joint distributions of wages and costs of work. Moreover, using quasi-linear utility with intensive margins, marginal introduction of BI can still benefit a large proportion of the poor whose productivities are below the average, without raising unemployment.
| Original language | English |
|---|---|
| Place of Publication | St Andrews |
| Publisher | University of St Andrews |
| Pages | 1-29 |
| Publication status | Published - Jun 2015 |
Publication series
| Name | School of Economics & Finance Discussion Paper |
|---|---|
| Publisher | University of St Andrews |
| No. | 1508 |
| ISSN (Print) | 0962-4031 |
| ISSN (Electronic) | 2055-303X |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth
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SDG 15 Life on Land
Keywords
- Basic income
- Unemployment benefits
- Wefare
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