On the implementation of the Universal Basic Income as a response to technological unemployment
14 Pages Posted: 2 Dec 2020 Last revised: 14 Jan 2021
Date Written: June 25, 2019
The effects of automation on our economy and society are more palpable than ever, with nearly half of jobs at risk of being fully executed by machines over the next decade or two. Policymakers and scholars alike have championed the Universal Basic Income (UBI) as the panacea. This paper examines the shortcomings of UBI in addressing the automation-led large-scale displacement of labor by analyzing empirical data from previous UBI-comparable experiments and presenting theoretical projections showing potential impacts of UBI in relevant living standards and employability metrics among pensioners. We then consider and recommend the retainment of existing means-tested welfare programs while bolstering funding and R&D for more up-to-date worker training schemes as a more effective solution to technological unemployment.
Keywords: UBI, Basic Income, Guaranteed Income, Automation, Industry 4.0, Job Displacement, Technological Unemployment, Future of Work
JEL Classification: J08, E61, O38, O10, H53, E24
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