Means testing versus basic income: the (lack of) political support for a universal allowance

Helmuth Cremer and Kerstin Roeder ()

No 853, IDEI Working Papers from Institut d'Économie Industrielle (IDEI), Toulouse

Abstract: This paper studies the political economy of a basic income (BI) versus a means tested welfare scheme. We show in a very simple setting that if society votes on the type of system, its generosity as well as the “severity” of means testing (if any), a BI system could only emerge in the political equilibrium under very strong and empirically implausible conditions. Instead, the political process leads to a means tested system. The necessity to draw political support does affect the design of the system, but it only implies that means testing becomes less severe so that benefits are extended also to themiddle classes. However, a fully universal system is rejected by a majority.

Keywords: Basic income; Means testing; Political support (search for similar items in EconPapers)
JEL-codes: D3 D7 H2 H5 (search for similar items in EconPapers)
Date: 2015-07
New Economics Papers: this item is included in nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.tse-fr.eu/sites/default/files/TSE/docum ... 5/wp_tseidei_588.pdf Full text (application/pdf)

Related works:
Journal Article: Means testing versus basic income: The (lack of) political support for a universal allowance (2015)
Working Paper: Means testing versus basic income: the (lack of) political support for a universal allowance (2015)
Working Paper: Means Testing versus Basic Income: The (Lack of) Political Support for a Universal Allowance (2015)
Working Paper: Means testing versus basic income: the (lack of) political support for a universal allowance (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ide:wpaper:29486

Access Statistics for this paper

More papers in IDEI Working Papers from Institut d'Économie Industrielle (IDEI), Toulouse Contact information at EDIRC.
Bibliographic data for series maintained by ().