Universal Basic Income: Inspecting the Mechanisms (ONLINE!)
Speaker(s)Itay Saporta Eksten (Tel Aviv University, Israel)
LocationErasmus University Rotterdam, Van der Goot Building M3-03
Date and time
June 20, 2022
11:30 - 12:30
We consider the aggregate and distributional impact of Universal Basic Income (UBI). We develop a model to study a wide range of UBI programs and financing schemes and to highlight the key mechanisms behind their impact. The most crucial channel is the rise in distortionary taxation (required to fund UBI) on labor force participation. Second, in importance is the decline in self-insurance due to the insurance UBI provides, resulting in lower aggregate capital. Third, UBI creates a positive income effect lowering labor force participation. Alternative tax-transfer schemes mitigate the impact on labor force participation and the cost of UBI.
before Friday June 17, 9 am if you would like meet him for a
bilateral, lunch or dinner.