ONTARIO, CANADA: Conference to examine labor market impact of guaranteed income

ONTARIO, CANADA: Conference to examine labor market impact of guaranteed income

As the Canadian province of Ontario prepares for a three-year trial of guaranteed minimum income (GMI), the Centre for Labour Management Relations (CLMR) at Ryerson University in Toronto is holding a conference to explore the economic motivations and labor market consequences of such a policy. The conference, The New Economy and a Basic Income Guarantee [1], is a private, registration-only event. According to CLMR’s website, the event will bring together over “250 representatives from academia, community, government, industry, law, unions and workers.”

Conference participants will investigate topics including the following: changes in the nature of work and employment that are generating pressure for new forms of the social assistance; theoretical and empirical work on GMI, with a focus on “intended and unintended labour market impacts”; the relationship between a GMI and labor and tax policies in the province; economic, political, and social factors that motivate Ontarians towards “administering, designing, organizing, planning, and receiving” a GMI.

The all-day event will take place on Monday, May 29.

Part of Ryerson University’s School of Management, CLMR promotes relations between labor and management that lead to (in the word of its mission statement) “greater productivity and profitability for businesses, improved job and income security for workers, and decreased inequality and injustice for all of society”. The center funds research projects in various disciplines and provides education and training to both students and professionals.


Photo (at Ryerson University) CC BY-NC-ND 2.0 wyliepoon

Text reviewed by Dave Clegg

[1] To minimize confusion, I use the term ‘guaranteed minimum income’ rather than ‘basic income guarantee’ (cf. my editorial “Basic Income’s Terminological Quagmire”). A basic income guarantee is often defined in American and Canadian contexts as an unconditional guarantee to all members of a community of an income sufficient to meet basic needs. This definition is narrower than BIEN’s definition ‘basic income’ in one dimension–it requires a minimum amount of the income guarantee–while broader in another, in that is not does require that payments be universal and of uniform amount (that is, it encompasses programs in which the amount of the benefit is reduced with earned income, as in Ontario’s forthcoming pilot program).

UK: Parliament releases summary of Oral Evidence Hearing on UBI

UK: Parliament releases summary of Oral Evidence Hearing on UBI

On January 12, 2017, the Work and Pensions Committee of the UK Parliament held an oral evidence hearing on universal basic income, the official summary of which is now available online. It ultimately concludes that the measure “risks being a distraction from workable welfare reform” and urges “the incoming government not to expend any energy on it.”

Basic Income News previously reported on the hearing here, and provided a summary of all contributions here. A video of the hearing can be viewed in its entirety here:

YouTube player

Universal basic income is commonly called “citizen’s income” (CI) in the UK. According to the hearing summary, CI is defined as a payment from the state to all citizens that is unconditional, non-withdrawable (i.e., not means tested), automatic, and paid to individuals rather than households. This largely aligns with BIEN’s definition of basic income.

The stated purpose of the hearing was “to understand the cases for and against CI and to reach a conclusion on whether this is an idea that merits more in-depth attention from ourselves [the Work and Pensions Committee] and the Government.”

The summary presents an explanation of why CI is attractive to many, covering factors that include: income security for all, mitigation of the negative effects of new, precarious types of work, strengthening of the bargaining position of workers, removing the work disincentives that can arise from the interaction of work and benefits, and reducing the stigma associated with claiming benefits. It is also noted that “[w]itnesses focused on the simplicity of CI schemes compared to the current welfare system.”

However, the perceived cost and political infeasibility of the CI ultimately proved more persuasive to the committee:

“The cost of introducing a CI at a level that would be beneficial for the poor would be prohibitive, as equal benefits would go to the whole population irrespective of their income. It would require rises in taxation that have not been contemplated by any political party serious about winning a general election.”

The summary goes on to note that a more modest CI scheme would lose its simplicity advantage over the existing welfare system, as it would need to be topped-up by means-tested and conditional income supports.

Reviewed by Kate McFarland

Photo: Westminster CC BY-SA 2.0 by Hernán Piñera

Read the official summary and official transcript.

Read more:

Kate McFarland, “UK: Parliament hosts oral evidence session on universal basic income (video)”, Basic Income News, January 20, 2017

Andre Coelho, “VIDEO: UK’s Work and Pensions Committee oral evidence on basic income (summary of content)”, Basic Income News, February 18, 2017.

64% of Europeans would vote for basic income, poll finds

64% of Europeans would vote for basic income, poll finds

The results of a new survey polling 11,000 individuals shows unprecedentedly high support for basic income across the European Union.

Dalia Research, a Berlin-based market research company, conducted its first survey of Europeans’ attitudes on basic income in March 2016, which yielded the widely publicized result that 64% of Europeans would vote for a basic income referendum if one were immediately held in their country. The company now plans to conduct such a survey annually, and has lately released the results of its second survey, conducted in March 2017.

For its most recent basic income survey, Dalia Research interviewed 11,021 people between the ages of 14 and 65, selected from all 28 EU members states (a slightly larger sample than was used in its 2016 study, which sampled 10,000 from the same age group and geographical regions). The survey was designed to be census representative, meaning that the sample was selected and data weighted to reflect the overall demographic characteristics of the EU as closely as possible, with respect to region, age, gender, education level, and rural/urban status.

The survey has a margin of error of plus or minus 1.1% at a 95% confidence level (that is, the survey was designed such that, if it were conducted repeatedly, then on 95% of occasions the estimated level of popular support for basic income, for example, would lie within 1.1 percentage points of the actual level support among all Europeans).

Survey respondents were first posed the question “How familiar are you with the concept known as basic income?” This question was asked prior to presenting any definition of the term.

In response, 24% claimed to “understand it fully,” with another 39% claiming to “know something about it.” Another 25% of respondents stated that they “have heard just a little about basic income,” and 13% claimed to “know nothing about it.” Comparing these data to the 2016 survey, the percentage of respondents indicated that they know “something about” the idea increased significantly (up from 35%), while the percentage who had “never heard of it” decreased significantly (down from 17%).

Following this preliminary question, survey respondents were presented with a definition of ‘basic income’ to be assumed for the remained of the survey: “A basic income is an income unconditionally paid by the government to every individual regardless of whether they work and irrespective of any other sources of income. It replaces other social security payments and is high enough to cover all basic needs (food, housing etc.).” This is, verbatim, the same definition adopted by Dalia Research for its 2016 survey.

It should be noted that Dalia’s definition differs from BIEN’s and, indeed, is more strict. Unlike the definition used by Dalia, BIEN’s definition does not stipulate that the basic income must be “high enough to cover all basic needs” nor that the basic income must “replace other social security payments.” Thus, any policy that meets the survey’s definition of ‘basic income’ is a policy that BIEN would also count as such; however, the survey does not encompass every policy that BIEN would consider a basic income.

With this definition in place, Dalia Research asked five further questions:

1. “If there would be a referendum on introducing basic income today, how would you vote?”

2. “At what point do you think your country should introduce basic income?”

3. “Which of the arguments FOR basic income do you find convincing?”

4. “Which of the following arguments AGAINST the basic income do you find convincing?”

5. “What could be the most likely effect of basic income on your work choices?”

 

Support for a Basic Income Referendum  

In response to the first question, 68% of respondents said that if a referendum on basic income was introduced now, they would vote for it. In 2016, this number stood at 64%. Thus, taking into account the margin of error, support for basic income appears to have increased slightly across the EU in the past year. Meanwhile, the proportion who said that they would oppose the referendum remained stable, at 24%.

Comparing responses between the six largest European countries, Dalia Research found that support was highest in Italy, where the proportion of respondents willing to vote for a basic income referendum increased by six percentage points since 2016, overtaking the level of support in Spain (which had showed the highest level of support in 2016).

The UK (which saw an increase in support of seven percentage points), Spain, and Germany all stand at around 68-69% support.

 

When Do Europeans Want Basic Income?

Although 24% of respondents said that they would vote against a basic income referendum held at present, only 8% stated that they think that their country should never introduce a basic income, with an additional 13% not favoring the policy for “anytime in the near future.”

At the same time, 33% supported a basic income “as soon as possible” in their respective countries, with others preferring to wait for successful experiments in their own country (32%) or in other countries (16%).

 

Arguments For and Against

In the next two questions, respondents were supplied with lists of six reasons that might be given for or against a basic income (respectively) and permitted to select as many as they believed to be “convincing.”

Out of the listed arguments for basic income, the three that were judged convincing by the greatest proportion of survey respondents were: “It reduces anxiety about financing basic needs” (52%), “It creates more equality of opportunity” (42%), and “It encourages financial independence and self-responsibility” (32%).

These were also found to be the three most popular “for” arguments in the 2016 survey, which examined the same list of arguments (both pro and con). However, the proportion of respondents who judged them convincing increased from 40%, 31%, and 23%, respectively. The level of support for the remaining three arguments also increased (from 21%, 21%, and 16%, respectively).

When considering the opposing views, 52% of respondents “found convincing” the argument that a basic income “might encourage people to stop working” [1]. This was also the argument against basic income that appears to have seen the greatest increase in its attraction since the 2016 poll, when 43% of respondents considered it convincing.

The next most persuasive arguments against basic income, out of those tested, were “Foreigners might come to my country and take advantage of the benefit” (39% found convincing, versus 34% in 2016), “Only the people who need it most should get something from the state” (34%, vs 32% in 2016), and “It is impossible to finance” (34%, vs 32% in 2016).

Out of those surveyed, 16% found none of the six given “for” arguments to be convincing (in comparison to 22% in 2016), and 12% found none of the provided “against” arguments to be so (in comparison to 15%).

 

“What Would You Do…?”

For the final question (“What could be the most likely effect of basic income on your work choices?”), respondents were required to select only one option from a list of responses. Here, 37% of respondents claimed that basic income would not affect their work choices, while 17% claimed that they would spend more time with family. The third most common response was “None of the above.”

One complication to interpreting these data lies in fact that, although selection was exclusive (respondents could choose only one answer), many of the answers describe behaviors that are compatible. To give just one example, a person who choses to “spend more time with family” or “do more volunteering work” would presumably also be likely to “work less” as means of securing this end; however, “work less” was presented a distinct option. It would thus be misleading, for example, to present the results of the question by claiming that “only 11% would stop working or work less,” since other response options are compatible with these choices (and might even presuppose that respondents plan to spend less time in paid work).

 

Thanks to Anisa Holmes at Dalia Research for providing information and graphics for use in this article, as well as the linked pdf presentation of the results.


[1] We don’t know exactly how respondents interpreted the word ‘convincing’ or its translation in their language. Given that a sizable majority of respondents claimed to be prepared in favor of a basic income, we might assume, based on the responses above, that many did not interpret it to mean ‘decisive’.

That said, however, we might note that Dalia Research did not perform a “post-assessment” of attitudes to determine if respondents’ views on basic income changed after the presentation of the arguments for and against the policy. Indeed, we should not assume that being alerted to these arguments would not cause respondents to change their assessment of the policy proposal through the course of a survey. (In this vein, we might mention that a survey of likely San Francisco voters conducted in April 2016 found that respondents changed their opinion on basic income after more policy specifics were stated, becoming overall less supportive.)

 

Cover photo CC BY-NC-ND 2.0 myri_bonnie

EDITORIAL: Does Greater Awareness of Basic Income Increase Support?

EDITORIAL: Does Greater Awareness of Basic Income Increase Support?

I occasionally hear it asserted that increased familiarity with basic income tends to increase individuals’ support for the idea: as people learn more about basic income, they become more likely to endorse the idea. It is important to clarify the apparent source of this claim and why, given this, it is actually baseless.

(Note that, while there might be many problems associated with measuring both awareness of and support for basic income, I will assume for the sake of argument that the claim is sensible, and focus on the specific misinterpretation of data that, based on my observations, seems to have given rise to this claim.)

 

The Dalia Research Poll

As far as I’ve been able to deduce through my following of the discussion of basic income, the claim originated through a misinterpretation of the results of a survey conducted by Dalia Research in March 2016. The survey was a milestone in public opinion research on basic income: the first EU-wide opinion poll on basic income, featuring a representative sample of 10,000 Europeans across 28 countries. Its scope, as well as its encouraging results (64% of respondents said that they would vote for a basic income referendum in their country), led to its wide dissemination within the basic income community. These results go to show how important it is to conduct public surveys as businesses, and the general public can obtain better insight into everyday needs. To help with creating surveys at various levels, a template like one that can be found at https://www.qualtrics.com/marketplace/survey-template/ can serve as a good base to start at. Knowing how people truly feel is an important step for the public.

In a summary of survey results, researchers reported the additional finding that “Europeans who said they were aware of basic income were also more likely to report that they would vote for it.” This claim, as stated, is accurate. However, it tends to implicate an additional claim that is not substantiated by the survey: the causal claim that awareness of basic income increases support for it.

It’s important here to understand the design of the survey in a bit more detail. In the first question, subjects were asked, “How familiar are you with the concept known as ‘basic income’?” (without no definition of ‘basic income’ provided).

 

 

Following this preliminary question, the interviewers provided the definition of that was to be assumed during the remainder of the survey: “A basic income is an income unconditionally paid by the government to every individual regardless of whether they work and irrespective of any other sources of income. It replaces other social security payments and is high enough to cover all basic needs (food, housing etc.).”

Subjects were then posed the question “If there would be a referendum on introducing basic income today, how would you vote?” (“for it,” “against it,” or “not vote”).

As part of their analysis, Dalia Research broke down the responses to the latter question by level of awareness as measured in the first question: “More aware” (corresponding to responses of “Understand it fully” and “Know something about it” on the first question) versus “Less aware” (corresponding to “Heard just a little about it” and “Never heard of it”).

 

 

As seen in the chart above, those who claimed to be relatively “in the know” about basic income were disproportionately likely to express willingness to vote in favor of the hypothetical referendum. This, it seems, was the main empirical support behind the claim that “awareness and support for basic income are linked,” as Delia Research cautiously phrased it. (We might also note that those with greater awareness were also disproportionately likely to express willingness to vote rather than to abstain. That is, awareness is associated not only with support but also with decisiveness.)

To cite the well-known Statistics 101 maxim, however, correlation does not imply causation. The finding that awareness and support for basic income are “linked” does not entail that higher awareness is the cause of support. In the present case, in fact, it’s easy to imagine a causal relationship in the opposite direction: plausibly, those who find the idea of basic income appealing are more motivated to research and learn more about it. (Indeed, this probably describes many of us who follow Basic Income News.) Moreover, to give another potential explanation, those who are generally interested in and supportive of progressive policy might be relatively likely to read publications that discuss basic income–and thus to learn about the concept–as well as being relatively likely to vote in favor of such a policy.

Whatever the underlying cause of the observed statistical relationship, one cannot cite the Dalia Research survey to support the assertion that awareness of basic income increases support. The survey simply did not test this causal claim, and thus provides no data on it.

 

Does Support Increase with Awareness?

How might one test the causal claim? One possibility might be to select individuals who initially report no knowledge of basic income, provide a short description of the policy, conduct a “pre-test” of their attitudes, provide more information about the proposal, reassess their attitudes toward the idea, and so on–making the imparting of information about basic income an experimental intervention. To my awareness, no such study has been conducted (although a 2016 survey of San Francisco voters, discussed below, comes close).

Given what we do know, however, it is unreasonable to infer that increased familiarity with basic income is sufficient–or even reliable–to generate increased support.

First, let’s consider the “real world” case study of the Swiss referendum. On June 5, 2016, citizens of Switzerland voted on a referendum that would have introduced an article in the federal constitution mandating a government-funded “basic income” sufficient to “allow the people to live in a dignified manner and participate in public life.” The referendum was defeated, with 23% of voters in favor. This final result suggests, if anything, a decline in popular support–compared, for example, to an April 2016 survey that indicated that 40% of Swiss voters were inclined to vote “yes” on the referendum–despite the fact that the basic income referendum continued be heavily publicized and debated between April and June (leading, presumably, to increased awareness).

Secondly, we might turn to “Oxford-style” debates on basic income, in which audience members are polled on their support for the issue before the debate begins and again after it has concluded. Presumably, nearly all audience members would claim that their familiarity with the issue being debated increases during the course of the debate. Minimally, then, such debate settings show that greater familiarity with basic income does not invariably lead to increased support, given that basic income proponents have “lost” Oxford-style debates such as ABC’s Intelligence Squared Debate (March 2017) and Ontario’s Wolf Hall Debate (April 2016), with even some initial supporters apparently changing their positions during the course of the debate. (Of course, the results can hardly be generalized: much depends on the quality of the particular debaters, and debate audiences are by no means representative of the general population.)

Finally, let’s look at a survey of 500 likely San Francisco voters conducted in April 2016. In contrast to most opinion polls on basic income, the San Francisco survey did attempt to discern the impact of increased understanding of basic income (initially called ‘base income’ in the survey) on support for the idea. At the start of the survey, subjects were asked “Do you support or oppose providing every resident of the United States with a base income?” No further elaboration on the concept of a “base income” was provided.

 

 

After respondents answered this initial question, the researchers provided more details about the proposed policy (which was relabeled as ‘universal basic income’) and polled respondents on their support or opposition to each individual policy detail: the payment “is not tied to work or having a job”; “the amount of the monthly check would be between $500 and $2000”; the “monthly income could be used for anything”; “the cost of the monthly income would be paid for by tax revenue”; “every adult resident would receive a monthly check.”

 

Finally, following the provision of these five policy specifics, respondents were against asked about their support for basic income. This post-assessment showed a decrease in support and increase in opposition (with fewer respondents remaining undecided). As Misha Chellam interpreted the result in a blog post, “digging into the details led to concerns and eroded the policy support.”

 

This is not, precisely, a test of the effect of increased awareness on support for basic income. For one, the terminology was alerted, with the usual term ‘base income’ used in the initial question. Additionally, we cannot be certain that the survey questions had the effect of imparting new information to respondents: in some cases, the additional questions might merely have had the effect of raising the salience of previously known information, which happens to cast a less favorable hue on the idea of implementing basic income. By way of example, surveys conducted in recent years in Finland and Canada indicate that support for basic income decreases when respondents are requested to entertain the idea of funding it through tax increases. In these cases, plausibly, it’s not that respondents did not previously believe that at least part of the funding for a basic income would come from tax dollars; it could simply be that this consideration was not salient when they were first asked, in the abstract, whether they favored the idea of a basic income.

We might note here, however, that 51% of respondents the San Francisco poll claimed to know “nothing” about universal basic income prior to the survey. Thus, it is quite likely that, for a majority of respondents, the questions on policy specifics did have the effect of introducing more information (not merely, that is, increasing the salience of old information or existing beliefs). In this light, the San Francisco survey not only fails to confirm the claim that greater awareness leads to greater support, but also supports the opposing claim that greater familiarity with the idea of a basic income tends to lead to a decrease in support (at least in the population studied).

Overall, we still know very little about the effect of awareness on support for basic income. To my knowledge, however, there is no sound empirical basis for the claim that awareness increases support–outside, perhaps, of anecdotes and hearsay.


Cover photo: CC BY 2.0 Generation Grundeinkommen

Dalia Research visuals: Nico Jasper (Apr 2016) “What do Europeans think about basic income?

San Francisco survey visuals: Misha Chellam (Dec 19, 2016) “Could universal basic income start with local and state legislation?Medium.

Methodological details of San Francisco survey confirmed by Seiji Carpenter of David Binder Research.

Reviewed by Tyler Prochazka

Charles Eisenstein: basic income as “technology of reunion”

Charles Eisenstein: basic income as “technology of reunion”

Charles Eisenstein is a degrowth activist, speaker and author of several books including “Sacred Economics,” and “The Ascent of Humanity” (some of which are available online for free), as well as a long time proponent of “alternative narratives,” political and economic ideas that challenge our current system. His work combines an interest in ecology with biology, earth healing, and the psyche. His podcast “A New and Ancient Story” airs every few weeks.

In a recent article on his personal website, Eisenstein asks, what is technology? “A fix,” Eisenstein suggests, maintaining that technology has become an addiction for our society, incapable of solving the problems we face today. “The entire scientific-industrial system has created” a “mindset of quantification, engineering, and control.” Eisenstein suggests that instead of pursuing the traditional “technology of separation” we must begin to pursue the “technology of reunion:” an expanded definition of technology. We must transcend the “story of separation” and enter instead into “the story of interbeing,” where “humans are not separate from nature,” and where “what we do to the world, we do to ourselves.”

Included in his examples of technological reunion are regenerative agriculture, homoeopathy, as well as the truth and reconciliation process. Alongside these, he places a “universal basic income (UBI) and community-based forms of resource sharing.” According to Eisenstein, the Society of Separation is sceptical of UBI, asking, “If basic needs were met, what would compel people to work?” He suggests UBI instead should be thought of as a way to support the impulse to grow and create things for the betterment of society, something Eisenstein believes one must take as given before UBI can be considered. UBI also supports “contributions that are hard to quantify,” such as lovingly raising children, caring for the elderly, or creating art and music.

UBI then fits into Eisenstein’s larger narrative of “the new and ancient Story of Interbeing”. “Some of these technologies will sound outrageous,” admits Eisenstein, who includes alongside UBI “sacred architecture; sound healing; hypnosis and mind/matter techniques; nonviolent communication; compassionate listening; sociocracy, holocracy and other group decision-making methods.” They may be difficult to take seriously because, on Eisenstein’s view, they “come from outside the boundaries of what we as a society have agreed to be real.”

For Eisenstein, UBI is a part of a new conception of technology, one of restoration rather than separation.

 

Article: Charles Eisenstein, “Institutes for Technologies of Reunion.” charleseisenstein.net, April 5 2017.

Credit Picture CC Taco Ekkel