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Comparative Analysis of Basic Income Proposals: UK and Ireland

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Author Info
Callan T ()
O'donoghue C ()
Sutherland H ()

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Abstract

Proposals for reforming the current system of taxes and transfers with a basic income and flat tax have received considerable attention in recent years in the UK and Ireland. Microsimulation models have played a central role in the formulation, the assessment, and the reformulation of these proposals. They have been used to assess the effects of proposals on the distribution of income and on labour supply incentives, and to examine their revenue effects. To the best of our knowledge, microsimulation analysis has not been used to examine the effects of the same basic income in the two countries. Such analysis has a number of attractions. From a substantive policy point of view, it is of interest in the context of proposals for harmonisation of social protection across EU member states; and can help to shed light on the nature of the differences between the current systems, by comparing them against a common benchmark. This paper describes the results of a series of simulations of common basic income reform proposals using the ESRI tax-benefit model for Ireland, SWITCH, and the Microsimulation Unit's tax-benefit model for the UK, POLIMOD.

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Paper provided by Microsimulation Unit at the Institute for Social and Economic Research in its series Microsimulation Unit Research Notes with number MU/RN/31.

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Date of creation: 01 Feb 1999
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Handle: RePEc:ese:msimrn:mu/rn/31

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Callan, Tim, 1991. "Income Tax and Welfare Reforms: Microsimulation Modelling and Analysis," Research Series, Economic and Social Research Institute (ESRI), number GRS154.
  2. Callan, Tim & O'Donoghue, Cathal & O'Neill, CiarĂ¡n, 1994. "Analysis of Basic Income Schemes for Ireland," Research Series, Economic and Social Research Institute (ESRI), number PRS21.
  3. Pudney, Stephen & Sutherland, Holly, 1994. "How reliable are microsimulation results? : An analysis of the role of sampling error in a U.K. tax-benefit model," Journal of Public Economics, Elsevier, vol. 53(3), pages 327-365, March. [Downloadable!] (restricted)
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  1. Sutherland H & Callan T, 1996. "Comparative Analysis of Basic Income Proposals: prospects for the use of national tax-benefit models in five European countries," Microsimulation Unit Research Notes MU/RN/21, Microsimulation Unit at the Institute for Social and Economic Research. [Downloadable!]
  2. Bourguignon F & O'donoghue C & Sastre-descals J & Spadaro A & Utili F, 1998. "Technical Description of Eur3: A Prototype European Tax-Benefit Model," Microsimulation Unit Research Notes MU/RN/25, Microsimulation Unit at the Institute for Social and Economic Research. [Downloadable!]
  3. Cathal O'Donoghue & Martin Evans, 1998. "Recasting Safety Nets: Reforming Social Assistance in Germany, Ireland and the United Kingdom," Papers WP098, Economic and Social Research Institute (ESRI). [Downloadable!]
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