Basic income or a single tapering rule? Incentives, inclusiveness and affordability compared for the case of Finland

Pareliussen, Jon; Hwang, Hyunjeong; Viitamäki, Heikki

doi:10.1787/d8c0fbc4-en

Cited by 4 publications

(5 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Microsimulation has shown that previously proposed universal benefits for Ireland can have detrimental consequences for some low earners. Pareliussen et al (2018) show that a similar type of UBI for Finland could lead to an increase in income inequality and conclude that the existing targeted benefit system does a better job. Hanna and Olken (2018) provide comprehensive discussion and analysis of the role of UBI versus targeted transfers at reducing poverty in developing countries.…”

Section: Section 2 Ubi Policy In Ireland: 30 Years Of Policy Discussi...mentioning

confidence: 92%

“…A UBI may be poorly targeted, as a large percentage of recipients will be highearning individuals. Pareliussen et al (2018) used microsimulation to evaluate the impacts of implementing a fiscally-neutral UBI in Finland. While that payment is quite modest, being roughly similar to the rate of jobseeker's benefit in Finland, it requires substantial income tax increases along with a removal of certain benefits.…”

Section: Introduction|3mentioning

confidence: 99%

See 1 more Smart Citation

A universal basic income for Ireland: Lessons from the international literature

Redmond¹,

McGuinness²,

Ciprikis³

2022

View full text Add to dashboard Cite

A universal basic income (UBI) is defined as a universal, unconditional cash payment that is made regularly, is sufficient to live on, is not means tested, carries no work requirements and is paid on an individual basis. This study examines the international evidence on universal basic incomes and identifies key issues for consideration in the design of any UBI pilot for Ireland. Despite the mainstream interest in UBI as a potential policy tool, relatively little is known about the associated consequences of such policies. Even the definition of a UBI appears to be poorly understood and is often misused in the public discourse. Several pilot studies have been recently implemented across different countries. However, some pilot studies depart from the accepted definition of UBI. For example, some are not universal, in that they only target a specific subgroup of the population and/or have eligibility restrictions based on earnings. Others provide a relatively low level of payment, which may fall short of what an individual could reasonably be expected to live on. There are a number of potentially positive impacts associated with a UBI. A universal, unconditional payment could eliminate the stigma associated with welfare receipt. If replacing existing welfare payments, a UBI would also involve lower transaction costs, both on the recipient (in terms of the application procedure) and on Government (in terms of administering the payment). Universal, unconditional payments would also avoid situations where people choose not to work in order to retain means-tested benefits. UBI could give individuals the freedom to turn down or leave insecure, exploitative or low-paid work in pursuit of better or improved work opportunities. In addition, it would mean that persons in informal and often unpaid work, such as childcare and eldercare, which is mostly done by women, receive some compensation for their labour. Empirical results from several pilot studies have found evidence of positive health impacts following the implementation of a UBI. In terms of potential disadvantages, a UBI, by definition, may not target those that are most in need, as a large percentage of recipients will be high-earning individuals. Furthermore, the cost of a UBI is likely to be very expensive, even if other existing benefits (such as unemployment benefits) are no longer required. The net impacts of a UBI on labour supply are unclear, with both positive and negative influences on labour market participation potentially arising as a consequence of a UBI. In this study, we undertake some basic calculations relating to four possible UBI approaches, all of which would involve an unconditional payment to every individual aged over 18 in Ireland.

show abstract

Section: Section 2 Ubi Policy In Ireland: 30 Years Of Policy Discussi...mentioning

confidence: 92%

Section: Introduction|3mentioning

confidence: 99%

A universal basic income for Ireland: Lessons from the international literature

Redmond¹,

McGuinness²,

Ciprikis³

2022

View full text Add to dashboard Cite

show abstract

“…An in-depth study for Finland using micro-simulation is quite instructive about what basic income does and how it compares to an alternative approach of providing minimum income protection in the shape of a universal credit, similar to what exists in the UK (Pareliussen et al, 2018).…”

Section: What We Know About the Impact Of Basic Income On Poverty And...mentioning

confidence: 99%

“…The study by Pareliussen et al (2018) compares Finland's benefit system with two benefit reform scenarios: a uniform benefit for all ("basic income") and a universal tapering rule ("universal credit"). It finds that replacing current benefits with a basic income would improve work incentives for many, but it would involve a drastic redistribution of income and an increase in poverty.…”

Section: What We Know About the Impact Of Basic Income On Poverty And...mentioning

confidence: 99%

Basic Income Advocates, Sober Up

Marx

2024

SSRN Journal

View full text Add to dashboard Cite

“…Cela limiterait aussi les coûts de gestion de ces dispositifs en uniformisant les bases de calcul. Cependant, l'expérience du Royaume-Uni montre que la mise en oeuvre d'une telle réforme est complexe et demande des changements majeurs dans les pratiques institutionnelles (Pareliussen et al, 2018 ;Encadré 9).…”

Section: B Le Marché Du Logement Contribue Au Mésappariement Des Compétencesunclassified