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

Felix FitzRoy and Jim Jin ()
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Jim Jin: University of St. Andrews

No 133, IZA Policy Papers from Institute for the Study of Labor (IZA)

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.

Keywords: basic income; job guarantee; poverty; unemployment (search for similar items in EconPapers)
JEL-codes: H53 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pbe and nep-pke
Date: 2017-09
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