Source: Springer

Source: Springer

Economist Maximilian Sommer (Katholische Universität Eichstätt – Ingolstadt) has published a book-length investigation into a financially feasible basic income scheme for Germany, encompassing arguments for an unconditional basic income, implementation details, and anticipated consequences of the policy.

The model that Sommer proposes is based on a negative income tax.

From the publisher’s description:
“This book analyzes the consequences that would arise if Germany’s means-tested unemployment benefits were replaced with an unconditional basic income. The basic income scheme introduced is based on a negative income tax and calibrated to be both financially feasible and compatible with current constitutional legislation. Using data from the German Socio-Economic Panel (GSOEP) the author examines the impact of the reform on the household labor supply as well as on both poverty and inequality measures. It is shown that by applying reasonable values for both the basic income and the implied marginal tax rate imposed on earned incomes, efficiency gains can be reconciled with generally accepted value statements. Furthermore, as the proposal includes a universal basic income for families, child poverty could be reduced considerably. The estimates are based on the discrete choice approach to labor supply.”

Free previews of the books are available at the publisher’s website.


Maximilian Sommer, “A Feasible Basic Income Scheme for Germany: Effects on Labor Supply, Poverty, and Income Inequality“, Springer, 2016

About Kate McFarland

Kate McFarland has written 512 articles.

Former lead writer and editor of Basic Income News.