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

See all articles by Le Dong Hai "DoHa" Nguyen

Le Dong Hai "DoHa" Nguyen

Georgetown University; Global Association of Economics Education

Date Written: June 25, 2019

Abstract

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

Suggested Citation

Nguyen, Le Dong Hai, On the implementation of the Universal Basic Income as a response to technological unemployment (June 25, 2019). Available at SSRN: https://ssrn.com/abstract=3714155 or http://dx.doi.org/10.2139/ssrn.3714155

Le Dong Hai Nguyen (Contact Author)

Georgetown University ( email )

Washington, DC 20057
United States

HOME PAGE: http://hainguyen.georgetown.domains/

Global Association of Economics Education ( email )

Boston, MA 02184
United States

HOME PAGE: http://gaee.org

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