Universal basic income: A feasible alternative to move people out of poverty in Mexico?

Cinthya G. Caamal-Olvera, Luis Huesca and Linda Llamas
Authors registered in the RePEc Author Service: Cinthya G. Caamal Olvera

Journal of Policy Modeling, 2022, vol. 44, issue 5, 1077-1093

Abstract: This paper evaluates the effectiveness of social policy to alleviate poverty in Mexico; where poverty is persistent, social programs are numerous and complex to monitor. Our analysis uses MEXMOD tax-benefit microsimulation. We simulate four scenarios that grant direct money transfers to individuals in multidimensional poverty, elderly people, families with children under 15 years old, and a universal basic income. The more generous and broader the coverage is, the costlier the policies. The first-best policy is the universal basic income, which can eradicate extreme poverty at the cost of 10.61 % of the gross domestic product. The least effective policy transfers only to older people.

Keywords: Poverty; Universal basic income; Conditional transfers; Microsimulation (search for similar items in EconPapers)
JEL-codes: D31 D61 D73 H53 H68 O54 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:44:y:2022:i:5:p:1077-1093

DOI: 10.1016/j.jpolmod.2022.07.005

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