Labour supply responses to a negative income tax in Spain

Amadeo Fuenmayor, Rafael Granell and Teresa Savall

Journal of Policy Modeling, 2024, vol. 46, issue 6, 1274-1287

Abstract: One of the major drawbacks of a Basic Income proposal is that it could induce people to reduce their labour supply. The main aim of this paper is to put forward a financially viable alternative to the current Spanish system of social protection, based on a Negative Income Tax proposal and introducing several changes in the social protection system. Using EUROMOD, the labour behavioural responses to these new conditions are studied in detail, using a structural model of labour supply.

Keywords: Basic income; Negative income tax; Microsimulation; Labour behaviour (search for similar items in EconPapers)
JEL-codes: C8 H24 I38 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:46:y:2024:i:6:p:1274-1287

DOI: 10.1016/j.jpolmod.2024.02.007

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