Universal Basic Income: Inspecting the Mechanisms
Seminar
Speaker
Yaniv Yedid-Levi
Date
15/05/2023 - 12:30 - 11:00Add To Calendar
2023-05-15 11:00:00
2023-05-15 12:30:00
Universal Basic Income: Inspecting the Mechanisms
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 mech-anisms 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.
https://drive.google.com/file/d/1XY_lFOpXTEDjtzrMegwo97GiIBH7sf8O/view
Economics Building (Number 504). Room 011
אוניברסיטת בר-אילן - Department of Economics
Economics.Dept@mail.biu.ac.il
Asia/Jerusalem
public
Place
Economics Building (Number 504). Room 011
Abstract
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 mech-anisms 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.
https://drive.google.com/file/d/1XY_lFOpXTEDjtzrMegwo97GiIBH7sf8O/view
Last Updated Date : 03/04/2023
