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

Author

Listed:
  • 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 for the Study of Labor (IZA).
  • Handle: RePEc:iza:izapps:pp133
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    References listed on IDEAS

    as
    1. Peter Diamond & Emmanuel Saez, 2011. "The Case for a Progressive Tax: From Basic Research to Policy Recommendations," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 165-190, Fall.
    2. Clément Imbert & John Papp, 2015. "Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee," American Economic Journal: Applied Economics, American Economic Association, vol. 7(2), pages 233-263, April.
    3. Fabio R Arico & Ulrike Stein, 2012. "Was Short-Time Work a Miracle Cure During the Great Recession? The Case of Germany and Italy," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 275-297, June.
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    More about this item

    Keywords

    basic income; job guarantee; poverty; unemployment;

    JEL classification:

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

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