A universal basic income (UBI) and unemployment insurance (UI) are two possible forms of social insurance for an economy in which job loss is a significant risk. Alice Fabre, Stéphane Pallage, and Christian Zimmermann (FPZ) address in a recent working paper from the Research Division of the St. Louis Fed. They argue, when compared head-to-head, UI is a better social safety net than a UBI. Skeptics are likely to seize on these findings, but in the Ed Dolan’s view, they do not support a blanket rejection of a UBI. Instead, as he explains, they highlight how important it is for UBI proponents to pay attention to details of financing and program design.
Ed Dolan. “Universal Basic Income vs. Unemployment Insurance: Which is the Better Safety Net?” EconoMonitor. November 24th, 2014
