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Basic Income and a Public Job Offer: Complementary Policies to Reduce Poverty and Unemployment

Author

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  • FitzRoy, Felix

    (University of St. Andrews)

  • Jin, Jim

    (University of St. Andrews)

Abstract

Unconditional basic income, or a job guarantee by government as employer-of-last-resort, are usually discussed as alternative policies, though the first does not provide the benefits of an earned income and a good job to the growing numbers in precarious- or under-employment, while the second fails to assist those who would prefer to remain in self-employment or particular occupations if their incomes were higher, rather than to work under a JG. Furthermore a JG cannot support those who are unwilling to work. We argue here that the only cost-effective policy for comprehensive welfare is a combination of a modest basic income with job offer by local authorities below the minimum wage.

Suggested Citation

  • FitzRoy, Felix & Jin, Jim, 2017. "Basic Income and a Public Job Offer: Complementary Policies to Reduce Poverty and Unemployment," IZA Policy Papers 133, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izapps:pp133
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    References listed on IDEAS

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    1. Stabilization policy with ignorance
      by chris in Stumbling and Mumbling on 2018-11-08 14:00:10

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    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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