Basic income and unemployment in a unionized economy
نویسنده
چکیده
This paper develops a dynamic general equilibrium model of a unionized economy to analyze the impact of unconditional basic income schemes on unemployment. Starting from a given level of the unemployment benefits, two reforms are envisaged : one where these benefits are replaced by a higher unconditional grant (the full basic income) and another where the income of the unemployed remains unchanged (the partial basic income). Assuming a proportional tax on earnings and a balanced budget of the State, it is shown that the equilibrium unemployment rate decreases if a partial basic income is implemented. The same conclusion holds for a sufficiently small full basic income.
منابع مشابه
Active citizen ’ s income , unconditional income and participation under imperfect competition : A normative analysis ∗
Various types of basic income schemes are considered to compensate the allocative inefficiencies induced by unemployment insurance systems. This paper develops a dynamic general equilibrium model of a unionized economy where participation to the labor market is endogenous and the budget of the State has to balance. It is shown that basic income schemes reduce the equilibrium unemployment rate. ...
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