Some Macroeconomic Consequences of Basic Income and Employment Subsidies

Arbeitspapier

Two macro models - one for a closed economy and the other for a small open economy - are used to examine the scope for income redistribution and employment creation. In particular, the introduction of both a guaranteed annual income (basic income) and an employment subsidy are examined, and these policies are compared to a straightforward tax cut for (unskilled) labour. All initiatives are financed by a tax on capital. In the open-economy setting, capital is perfectly mobile, so there is a trade-off between the direct benefits of each policy, and the costs that follow from the out-migration of capital. The model is used to assess the relative importance of these competing effects.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 916

Classification and Topics

• Classification: Wirtschaft
• Subject: guaranteed annual income ; subsidies ; capital taxes ; redistribution.

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Moutos, Thomas ; Scarth, William
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/76418
• Last update: 10.03.2025, 11:42 AM CET