Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/113326
Authors: 
Torry, Malcolm
Year of Publication: 
2014
Series/Report no.: 
EUROMOD Working Paper EM17/14
Abstract: 
Citizen's Income - an unconditional and nonwithdrawable income for every individual - would offer many advantages, but transition from the UK's current largely means-tested benefits system to one based on a Citizen's Income might generate initial losses for some low-income households, and this could make a Citizen's Income politically unattractive. This paper employs EUROMOD to study the initial losses that a variety of different Citizen's Income schemes would generate, and finds that in those schemes in which a Citizen's Income replaces most means-tested benefits, substantial household losses would occur, both generally and for households in the lowest disposable income decile, whereas where means-tested benefits are not abolished, but instead the Citizen's Income reduces means-tested benefits in the same way that other existing income does, almost no households in the lowest disposable income decile suffer initial losses, and initial losses generally are at a manageable level. This means that there is at least one method for implementing a Citizen's Income that could be politically attractive.
Subjects: 
citizen's Income
household income
initial losses
microsimulation model
JEL: 
C80
H53
H55
I38
R20
Document Type: 
Working Paper

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