by Karl Widerquist | Dec 8, 2014 | Research
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
by Liam Upton | Dec 7, 2014 | Research
Credit: Jackie - Flickr
[Liam Upton]
Scott Santens, “Wouldn’t Unconditional Basic Income Just Cause Massive Inflation?”, Medium, November 22 2014
by Toby | Dec 7, 2014 | Research
ABSTRACT: In this paper we compare the welfare effects of unemployment insurance (UI) with an universal basic income (UBI) system in an economy with idiosyncratic shocks to employment. Both policies provide a safety net in the face of idiosyncratic shocks. While the unemployment insurance program should do a better job at protecting the unemployed, it suffers from moral hazard and substantial monitoring costs, which may threaten its usefulness. The universal basic income, which is simpler to manage and immune to moral hazard, may represent an interesting alternative in this context. We work within a dynamic equilibrium model with savings calibrated to the United States for 1990 and 2011, and provide results that show that UI beats UBI for insurance purposes because it is better targeted towards those in need.
Stephane Pallage, Christian Zimmermann, “Universal Basic Income versus Unemployment Insurance”, IDEAS, 2014 November 14
by Andre Coelho | Dec 6, 2014 | Research
Volendam. © ANP
Dutch minister Asscher has shown concerns about further automatization and the necessity to apply new instruments to social policy. A possibility is presented through the unconditional basic income, applied to Dutch society, discussing advantages and its financing.
Tike van der Eijk and Paula Teutscher, “Het is tijd voor een basisinkomen voor iedereen [It’s time for a Basic Income for everyone]“, de Volkskrant, October 2 2014
by Andre Coelho | Dec 5, 2014 | Research
Handshake - Credited to ELUMN8
In Germany, the unconditional basic income (UBI) idea has been around for years, through political activists. However, its application seems utopian, thundered from critics all around the political spectrum. The author enumerates arguments against the UBI, while defending its merits.
Felix Werdermann, “Utopie trifft Politik [Utopia meets Politics]“, der Freitag, September 24 2014
