The Constitutional Economics Network Working Papers 01-2019
Inspired by Fröhlich and Oppenheimer (1990), an experimental survey in the lab was designed to find out if preferences for three different redistribution schemes differ under a veil of ignorance. The three schemes are a stylized version of the status quo German welfare state (A), a control scheme without income taxation and redistribution (B) and one in which a flat tax-financed basic income is paid to all (C). Furthermore, the study investigates whether the introduction of a basic income induces a decrease in the time allocation to paid and unpaid work. The results point to no significant difference in allocated working hours between A and C. Concerning preferences, access to information on implications of schemes and self-interest played a central role in their definition.
lab experiment basic income welfare state Germany time allocation constitutional economics labor supply