A critical approachto basic income: costs and incentives. An approximation to the case of Spain

Análisis crítico de la renta básica: costes e incentivos. Aplicación al caso español

José María Casado and Miguel Sebastián
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José María Casado: Coordinador Adjunto del Spending Review, Jefe de Proyecto de Beneficios Fiscales de la AIReF.
Miguel Sebastián: Profesor Titular de Análisis Económico de la Universidad Complutense.

No 2019-33, Documentos de Trabajo del ICAE from Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico

Abstract: This paper estimates the costs of basic income and analyses its incentives to conclude that there is an inverse relationship between them. The more unconditional the basic income is, the less incentive problems will arise, but it will be more costly. We approximate its costs to the case of Spain, both using a macroeconomic approach and one with micro data. The high cost of the universal basic income implementation requires to limit the number of recipients by income or labour status and, therefore, labour supply and human capital incentive problems could be materialized. Implications for inequality are also discussed.

Keywords: Basic income; Incentives; Costs; Conditionality; Micro data; Inequality.; Renta básica; Incentivos; Costes; Condicionalidad; Microdatos; Desigualdad. (search for similar items in EconPapers)
Pages: 19 pages
Date: 2019-10
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