A critical approach to basic incomecosts and incentives. An approximation to the case of Spain
- José María Casado 2
- Miguel Sebastián 1
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1
Universidad Complutense de Madrid
info
- 2 Coordinador Adjunto del Spending Review. Jefe de Proyecto de Beneficios Fiscales de la AIReF y Economista Titulado del Banco de España
ISSN: 2341-2356
Year of publication: 2019
Issue: 33
Pages: 1-19
Type: Working paper
More publications in: Documentos de Trabajo (ICAE)
Abstract
This paper estimates the costs of basic income and analyses its incentives to conclude that there is an inverse relationship between them. The more unconditional the basic income is, the less incentive problems will arise, but it will be more costly. We approximate its costs to the case of Spain, both using a macroeconomic approach and one with micro data. The high cost of the universal basic income implementation requires to limit the number of recipients by income or labour status and, therefore, labour supply and human capital incentive problems could be materialized. Implications for inequality are also discussed.
Bibliographic References
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- INE (2019a) “Encuesta Continua de Hogares”.
- INE (2019b) “Encuesta de Población Activa”.
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