Responding to the crisis: economic stabilisation grants

Five Crossroads on the Way to Basic Income. An Italian Tour

“…Moreover, they do not eliminate other problems, including take-up costs, stigma, and paternalism, that lead to low take-up rates (Atkinson 2011) and marginalization. Programs focusing on wage subsidies or tax credits for low-income earners introduce additional distortions by favoring sectors that employ low-wage workers (Standing 2011). Moreover, recent ex-post reform evaluations (Barrientos and LloydSherlock 2002) and experimental evidence (e.g.…”

“…Along with large potential gains, these processes also bring massive reallocations of activities, jobs and labour. There is evidence that the gains from automation and globalization end up in just a few hands and are likely smaller than they might otherwise be unless efficient redistribution mechanisms are implemented (Spence 2011;Standing 2012;Sachs and Kotlikoff 2012;Cowen 2013;Krugman 2013;Hughes 2014;Marchant et al 2014;Brynjolfsson and McAfee 2014). The increasing need for redistribution stemming from globalization and technological progress is also the focus of the so-called "compensation thesis" (Rodrik 1998;Brady et al 2005).…”

“…Economists, social scientists and politicians divide into two positions: some (the majority) tend to support the direction that has so far prevailed in practice; others suggest universal and unconditional policies as the true solution (e.g. Standing 2011;Atkinson 2015). This paper aims at providing an empirical contribution to the debate, with focus on Italy.…”

Is unconditional basic income a viable alternative to other social welfare measures?

“…And they do not eliminate other problems, including take-up costs, stigma, and paternalism, that lead to low take-up rates and marginalization [3]. Programs focusing on wage subsidies or tax credits for low-income earners introduce additional distortions by favoring sectors that employ lowwage workers [4].…”

“…An unconditional basic income policy would respond automatically to the volatility and shocks inherent in the globalized economy [4]. Moreover, it would provide an efficient mechanism for reallocating jobs and resources in the globalized economy, where employers need flexibility to compete on a global scale and employees need support to redesign their careers and occupational choices.…”