Universal Basic Income in the Us and Advanced Countries

44 Pages Posted: 12 Feb 2019 Last revised: 13 Apr 2023

See all articles by Hilary Williamson Hoynes

Hilary Williamson Hoynes

University of California, Berkeley; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Jesse Rothstein

University of California, Berkeley, The Richard & Rhoda Goldman School of Public Policy; University of California, Berkeley, College of Letters & Science, Department of Economics; National Bureau of Economic Research (NBER)

Date Written: February 2019

Abstract

We discuss the potential role of Universal Basic Incomes (UBIs) in advanced countries. A feature of advanced economies that distinguishes them from developing countries is the existence of well developed, if often incomplete, safety nets. We develop a framework for describing transfer programs, flexible enough to encompass most existing programs as well as UBIs, and use this framework to compare various UBIs to the existing constellation of programs in the United States. A UBI would direct much larger shares of transfers to childless, non-elderly, non-disabled households than existing programs, and much more to middle-income rather than poor households. A UBI large enough to increase transfers to low-income families would be enormously expensive. We review the labor supply literature for evidence on the likely impacts of a UBI. We argue that the ongoing UBI pilot studies will do little to resolve the major outstanding questions.

Suggested Citation

Hoynes, Hilary Williamson and Rothstein, Jesse, Universal Basic Income in the Us and Advanced Countries (February 2019). NBER Working Paper No. w25538, Available at SSRN: https://ssrn.com/abstract=3332286

Hilary Williamson Hoynes (Contact Author)

University of California, Berkeley ( email )

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IZA Institute of Labor Economics

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Jesse Rothstein

University of California, Berkeley, The Richard & Rhoda Goldman School of Public Policy ( email )

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HOME PAGE: http://eml.berkeley.edu/~jrothst

University of California, Berkeley, College of Letters & Science, Department of Economics ( email )

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Berkeley, CA 94720-3880
United States

National Bureau of Economic Research (NBER)

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United States

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