Universal Basic Income: Debate and Impact Assessment

Abstract

This paper discusses the definition and modelling of a universal basic income (UBI). After clarifying the debate about what a UBI is and presenting the arguments in favor and against, an analytical approach for its assessment is proposed. The adoption of a UBI as a policy tool is discussed with regard to the policy objectives (shaped by social preferences) it is designed to achieve. Key design dimensions to be considered include: coverage, generosity of the program, overall progressivity of the policy, and its financing.

Policy Mix During a Pandemic Crisis: A Review of the Debate on Monetary and Fiscal Responses and the Legacy for the Future

“…On the one hand, different options to close the coverage gaps uncovered by crisis will probably be discussed. On the other hand, the possible difficulties of proper targeting income support in the midst of the crisis might reignite calls for unconditional and universal transfers (Francese and Prady, 2018). Weighting pros and cons of different structures for a hypothetical renewed social safety net, once the crisis is over, would be an interesting topic, but it is outside the scope of the current report.…”

The Political Economy of Inclusive Growth: A Review

“…Beyond the size of government tax take and social spending, 14 key qualitative features of redistribution efforts are population coverage, progressivity, and generosity (Francese and Prady, 2018). The volume of social spending alone is not sufficient to qualify as a welfarestate commitment as it may disproportionately benefit a privileged few or powerful interest groups.…”

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“…Evaluating the propriety and practicality of UBI requires understanding and working; however, the exchange offs that any program or set of projects face as far as inclusion, progressivity, sufficiency, motivators, costs, financing choices, political economy, and conveyance. None of these parameters have a simple and prearranged result [78,79]. A UBI is an apparently straightforward thought that includes complex decisions [61].…”