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A quantitative evaluation of universal basic income

Key Question Being Explored in This Insight:

Quantitative research has compared Universal Basic Income (UBI) to means-tested transfers. Different UBI generosity and finance options were examined. All reforms resulted in welfare losses for most initial households, which increased with UBI's generosity. Consumption tax-financed reforms generated lower efficiency losses than income taxes but benefited fewer people.

Institution: Faculti

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Critical Questions to Consider ▼

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  • What are the limitations of the research method?

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Quantitative research has compared Universal Basic Income (UBI) to means-tested transfers. Different UBI generosity and finance options were examined. All reforms resulted in welfare losses for most initial households, which increased with UBI’s generosity. Consumption tax-financed reforms generated lower efficiency losses than income taxes but benefited fewer people.

Image courtesy of interviewee. December 21, 2023

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