Arbeitspapier
Efficient redistribution: comparing basic income with unemployment benefits
We compare two systems of income redistribution: unemployment benefits (UB) and basic income (BI). First, for a simple utility function, with both intensive and extensive margins, the unemployed are likely better off with pure BI than pure UB, regardless of labour supply elasticity and wage distribution. Then we allow a general utility function and ignore intensive margins. For given unemployment, lowering UB and raising BI always benefits the unemployed, raises utilitarian welfare and benefits a poor majority. Reducing unemployment and UB simultaneously can benefit a majority of the employed as well as all unemployed, again for any wage distribution.
- Language
-
Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 5236
- Classification
-
Wirtschaft
Taxation, Subsidies, and Revenue: General
Market Structure, Pricing, and Design: General
- Subject
-
income distribution
basic income
unemployment benefits
- Event
-
Geistige Schöpfung
- (who)
-
FitzRoy, Felix
Jin, Jim
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- FitzRoy, Felix
- Jin, Jim
- Institute for the Study of Labor (IZA)
Time of origin
- 2010
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