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The impact of basic income on the propensity to work: Theoretical issues and micro-econometric results

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  • Gamel, Claude
  • Balsan, Didier
  • Vero, Josiane

Abstract

In France, there is much debate about "minimum social benefits", and basic income is still perceived as too daring a proposal, in particular because it is believed to encourage idleness. How can we predict how individuals would use this unconditional income? As regards low wage earners, we look first at the uncertainties surrounding the economic theory as to the behavioural changes that this could induce. This is followed by an econometric study of answers given in 2000 by a panel of poorly qualified young adults who had recently become employed : this indicates that the payment of a monthly allowance of 2000 FF (approximately 300 Euros) would not result in a massive withdrawal from work. Integration through employment means more than just receiving a wage, and disconnecting work from income rarely encourages individuals to "experiment" with other types of social integration.
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  • Gamel, Claude & Balsan, Didier & Vero, Josiane, 2006. "The impact of basic income on the propensity to work: Theoretical issues and micro-econometric results," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(3), pages 476-497, June.
    • Handle: RePEc:eee:soceco:v:35:y:2006:i:3:p:476-497
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    1. Danièle Guillemot & Patrick Pétour & Hélène Zajdela, 2002. "Trappe à chômage ou trappe à pauvreté. Quel est le sort des allocataires du RMI ?," Revue économique, Presses de Sciences-Po, vol. 53(6), pages 1235-1252.
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    Cited by:

    1. Witztum, Amos, 2008. "Social attitudes and re-distributive policies," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1597-1623, August.
    2. Verena Löffler, 2021. "Questioning the feasibility and justice of basic income accounting for migration," Politics, Philosophy & Economics, , vol. 20(3), pages 273-314, August.
    3. Claude Gamel, 2008. "Allocation universelle et transferts "ELIE" : De la divergence à la compatibilité ?," Working Papers halshs-00325693, HAL.
    4. Bru Laín, 2022. "Between Epistemic Necessity And Political Utility: The Role Of Basic Income Experiments," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(2), pages 633-639, March.
    5. Siameh, Celestine O., 2020. "Universal Basic Income, Targeted Cash Transfers, and Progressive Taxation: Reducing Income Inequality in South Africa," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304571, Agricultural and Applied Economics Association.
    6. Claude Gamel, 2016. "Liberal Foundations of Basic Income. Argument Combining Philosophy and Economics [Fondements libéraux du revenu d’existence. Une argumentation combinant philosophie et économie]," Post-Print halshs-01397075, HAL.
    7. Redmond, Paul & McGuinness, Seamus & Ciprikis, Klavs, 2022. "A Universal Basic Income for Ireland: Lessons from the international literature," Research Series, Economic and Social Research Institute (ESRI), number RS146, June.
    8. Pech Wesley J, 2010. "Behavioral Economics and the Basic Income Guarantee," Basic Income Studies, De Gruyter, vol. 5(2), pages 1-17, December.
    9. Martinelli, Luke & O'Neill, Kathryn, 2019. "A comparison of the fiscal and distributional effects of alternative basic income implementation modes across the EU28," EUROMOD Working Papers EM14/19, EUROMOD at the Institute for Social and Economic Research.
    10. Claude Gamel, 2019. "Liberal Foundations of Basic Income. Argument Combining Philosophy and Economics
      [Fondements libéraux du revenu de base. Une argumentation combinant philosophie et économie]      ," Working Papers halshs-02111455, HAL.

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