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Exploring policy responses to labour-saving technologies: An assessment of basic income, job guarantee, and working time reduction

Author

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  • D’Alessandro, Simone
  • Distefano, Tiziano
  • Spinato Morlin, Guilherme
  • Villani, Davide

Abstract

This study examines policy responses to labor-saving technologies, focusing on employment and income inequality. Using the EUROGREEN model, we assess three scenarios: basic income, job guarantee, and working time reduction. The job guarantee scheme effectively reduces unemployment but raises the fiscal deficit, while working time reduction improves wage share, cuts deficits, and reduces inequality. Basic income has a moderate impact on unemployment but significantly reduces inequality but is accompanied by higher deficits. A wealth tax could help finance these policies and contribute to inequality reduction. This research provides novel insights to policymakers by demonstrating how a strategic mix of labour policies can improve socio-economic outcomes in the face of technological-induced job disruptions.

Suggested Citation

  • D’Alessandro, Simone & Distefano, Tiziano & Spinato Morlin, Guilherme & Villani, Davide, 2025. "Exploring policy responses to labour-saving technologies: An assessment of basic income, job guarantee, and working time reduction," Journal of Policy Modeling, Elsevier, vol. 47(1), pages 49-63.
    • Handle: RePEc:eee:jpolmo:v:47:y:2025:i:1:p:49-63
    DOI: 10.1016/j.jpolmod.2025.01.001
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    More about this item

    Keywords

    Labour-saving technologies; Input-output; Inequality; Policy scenario analysis; Automation;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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