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Unemployment Benefits and Basic Income. Economic Performance, Income Inequality and Social Welfare

Author

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  • Rillaers, Alexandra

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

Two social security schemes are compared in the long run, one based on a basic income and on the other on unemployment benefits. The analysis is carried out in an overlapping generations model in which agents have to decide whether to become skilled or remain unskilled, and how much time to devote to work. We study the effects of both social security systems on the economic incentives determining individual behavior. We compare their implications in terms of economic performance, income inequality, and social welfare at the steady state. The laissez-faire situation is taken as the bench mark.

Suggested Citation

  • Rillaers, Alexandra, 2000. "Unemployment Benefits and Basic Income. Economic Performance, Income Inequality and Social Welfare," LIDAM Discussion Papers IRES 2000022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2000022
    as

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    More about this item

    Keywords

    basic income; unemployment benefit; welfare; inequality; leisure;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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