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

Abstract

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.

Questioning the feasibility and justice of basic income accounting for migration

“…Overviews on empirical basic income research are presented by Widerquist (2018) and, for Europe specifically, by Delsen (2019). Gilbert et al (2018) and de Paz-Báñez et al (2020) focus on trial programs to test how labor supply is affected by the introduction of basic income; they show that the overall effects on hours worked were negligible. However, empirical analyses do not adequately assess how the introduction of a basic income would play out in the real world (Hoynes and Rothstein, 2019: 949–952; Špeciánová, 2018a).…”

Are Universal and Guaranteed Basic Income Programs Effective in the United States? A Review

“…A systematic review completedby de Paz-Báñez et al (2020) analyzed three partial UBI experiences, five field experiences, two laboratory experiments, and six micro simulations over the course of 20 years. The review addressed the limitation that UBI has only been partially implemented and therefore the conclusions were based on experiments, simulations, and programs compared to UBIs.…”

“…Many UBI/GBI programs have been introduced or are being introduced throughout the United States (DiBenedetto, 2022; Napoletano, 2022). More than 40 programs are reportedly underway (DiBenedetto, 2022; Napoletano, 2022).…”

“…Many UBI/GBI programs have been introduced or are being introduced throughout the United States (DiBenedetto, 2022; Napoletano, 2022). More than 40 programs are reportedly underway (DiBenedetto, 2022; Napoletano, 2022). A few programs include Compton Pledge in California, Big Leap in California, Denver Basic Income Project in Colorado, Just Income Gainesville in Florida, In Her Hands in Georgia, Chicago Resilient Communities Pilot in Illinois, Shreveport Guaranteed Income Program in Louisiana, Newark Movement for Economic Equity in New Jersey, and The Bridge Project in New York (DiBenedetto, 2022; Napoletano, 2022).…”

¿Es posible implantar una Renta Básica Universal en Europa?

“…En los últimos años, se ha pasado de despreciar esta medida como una utopía, a realizar análisis serios sobre su viabilidad. Los argumentos a favor son poderosos, ya que los estudios realizados destacan su utilidad para erradicar la pobreza y reducir la desigualdad, con mayor eficacia que otras políticas sociales ya implantadas, como la renta mínima u otras transferencias condicionales (Atkinson, 1996;Banerjee et al, 2019;Magnani y Piccoli, 2020;De Paz-Báñez et al, 2020 entre otros, ver bibliografía de este artículo al final). No obstante, se plantean también importantes obstáculos a su implantación, entre los que destacan su viabilidad económica, el efecto desincentivador que podría tener en el mercado de trabajo y las consecuencias macroeconómicas de su implantación, principalmente en términos de inflación y déficit público (ver discusión sobre estos aspectos más abajo).…”