How incentives matter? An illustration from the targeted subsidies reform in Iran

Gauthier, Sylvie; Tabatabai, Taraneh

doi:10.1007/s00355-018-1141-5

Cited by 5 publications

(4 citation statements)

References 23 publications

(13 reference statements)

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“…The reform contributed to an instant decline in poverty in both urban and rural areas. In addition, Gauthier and Tabatabai (2019) suggest that the subsidy reform has been perceived as a pro-poor policy by the government.…”

Section: Empirical Research About Energy Subsidy Reformsmentioning

confidence: 99%

Cash instead of subsidy: Assessing the impact of the iranian energy subsidy reform on households

Zarepour

Wagner

2022

Energy Policy

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Section: Empirical Research About Energy Subsidy Reformsmentioning

confidence: 99%

Cash instead of subsidy: Assessing the impact of the iranian energy subsidy reform on households

Zarepour

Wagner

2022

Energy Policy

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“…There was no noticeable effect on employment, but there was in other aspects such as well-being and health, the consumption of alcohol and tobacco also decreased, and juvenile delinquency declined considerably [52,108,109].…”

Section: (C) Cherokee Nationmentioning

confidence: 95%

“…The deterioration over time of Iran's political, social, and economic circumstances in these years makes the studies of this experience focus only on the 1st year, therefore, it is possible to isolate the effect of the UBI from other external elements. Nevertheless, Gauthier and Tabatabai [52] carried out an analysis of 2 years before and 4 years after (we do not include it here, since it does not analyse the effect on employment).…”

Section: (B) Iranmentioning

confidence: 99%

Is There Empirical Evidence on How the Implementation of a Universal Basic Income (UBI) Affects Labour Supply? A Systematic Review

et al. 2020

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The objective of this article is to determine, as conclusively as possible, if the implementation of a Universal Basic Income (UBI) would lead to a significant reduction in the working age population labour supply. If this were true, implementation of a UBI may not be sustainable. To do this, we will compile empirical evidence from studies over the last few decades on the effects of implementation of a UBI on employment. We apply the PRISMA methodology to better judge their validity, which ensures maximum reliability of the results by avoiding biases and making the work reproducible. Given that the methodologies used in these studies are diverse, they are reviewed to contextualize the results taking into account the possible limitations detected in these methodologies. While many authors have been writing about this issue citing experiences or experiments, the added value of this article is that it performs a systematic review following a widely tested scientific methodology. Over 1200 documents that discuss the UBI/employment relationship have been reviewed. We found a total of 50 empirical cases, of which 18 were selected, and 38 studies with contrasted empirical evidence on this relationship. The results speak for themselves: Despite a detailed search, we have not found any evidence of a significant reduction in labour supply. Instead, we found evidence that labour supply increases globally among adults, men and women, young and old, and the existence of some insignificant and functional reductions to the system such as a decrease in workers from the following categories: Children, the elderly, the sick, those with disabilities, women with young children to look after, or young people who continued studying. These reductions do not reduce the overall supply since it is largely offset by increased supply from other members of the community.

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“…For an exception focusing on the importance of incentives, seeGauthier and Tabatabai (2019) which relies, inter alia, on detailed annual income and expenditures data on urban literate households for the six-year period 1388-1393 of Iranian calendar, two years preceding the reform and four afterwards.…”

mentioning

confidence: 99%

Basic Income by Default: Lessons from Iran’s ‘Cash Subsidy’ Programme

Karshenas

Tabatabai

2019

The Palgrave International Handbook of Basic Income

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This paper considers Iran's nationwide universal cash transfer programme which was launched in December 2010 as compensation for massive cuts in subsidised prices of energy and other basic products. We focus on the unusual manner in which the programme emerged and its potential lessons. Of particular interest is the impact on incomes and expenditures, labour supply, inflation, income distribution and poverty in the immediate aftermath of the launch of the programme, as well as its implications for similar schemes such as financing a UBI by carbon taxes. Given an extremely adverse broader environment however, the programme, while still continuing after eight years, has lost much of its lustre as the purchasing power of the transfers has been largely wiped out through inflation.

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How incentives matter? An illustration from the targeted subsidies reform in Iran

Cited by 5 publications

References 23 publications

Cash instead of subsidy: Assessing the impact of the iranian energy subsidy reform on households

Cash instead of subsidy: Assessing the impact of the iranian energy subsidy reform on households

Is There Empirical Evidence on How the Implementation of a Universal Basic Income (UBI) Affects Labour Supply? A Systematic Review

Basic Income by Default: Lessons from Iran’s ‘Cash Subsidy’ Programme

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