Arbeitspapier

An unconditional basic income in the family context: Labor supply and distributional effects

In this paper we estimate the effects of an unconditional basic income on labor supply and income distribution with a special focus on the incentives to work in the family context. An unconditional basic income guarantees every citizen a minimum income without any means-testing. We simulate a proposed basic income reform with a detailed microsimulation model, estimate labor supply reactions with a structural labor supply model and perform distributional analysis using micro data from the German Socio-Economic Panel. As the originally proposed basic income concept yields a very high deficit, we also analyze two budget neutral alternatives. Comparing labor supply and distributional results of the budget neutral alternatives, the well-known equity-effciency trade-off is unveiled. In the family context our analyzes suggest that the unconditional character of the basic income causes increasing family incomes, but also serious disincentives to work for secondary earners.

Language
Englisch

Bibliographic citation
Series: ZEW Discussion Papers ; No. 10-091

Classification
Wirtschaft
Statistical Simulation Methods: General
Personal Income, Wealth, and Their Distributions
Positive Analysis of Policy Formulation and Implementation
Fiscal Policies and Behavior of Economic Agents: Household
National Government Expenditures and Welfare Programs
Labor Economics Policies
Time Allocation and Labor Supply
Subject
basic income
negative income tax
flat tax
female labor supply
Soziale Mindestsicherung
Wirkungsanalyse
Arbeitsangebot
Familienökonomik
Verteilungswirkung
Negative Einkommensteuer
Flat Tax
Steuerwirkung
Mikrosimulation
Deutschland

Event
Geistige Schöpfung
(who)
Horstschräer, Julia
Clauss, Markus
Schnabel, Reinhold
Event
Veröffentlichung
(who)
Zentrum für Europäische Wirtschaftsforschung (ZEW)
(where)
Mannheim
(when)
2010

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Horstschräer, Julia
  • Clauss, Markus
  • Schnabel, Reinhold
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Time of origin

  • 2010

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