A Feasible Basic Income Scheme for Germany

Effects on Labor Supply, Poverty, and Income Inequality

  • Maximilian Sommer

Part of the Contributions to Economics book series (CE)

Table of contents

  1. Front Matter
    Pages i-xxi
  2. Maximilian Sommer
    Pages 1-6
  3. Maximilian Sommer
    Pages 75-105
  4. Maximilian Sommer
    Pages 133-174
  5. Maximilian Sommer
    Pages 175-177
  6. Back Matter
    Pages 179-198

About this book

Introduction

This book analyzes the consequences that would arise if Germany’s means-tested unemployment benefits were replaced with an unconditional basic income. The basic income scheme introduced is based on a negative income tax and calibrated to be both financially feasible and compatible with current constitutional legislation. Using data from the German Socio-Economic Panel (GSOEP) the author examines the impact of the reform on the household labor supply as well as on both poverty and inequality measures. It is shown that by applying reasonable values for both the basic income and the implied marginal tax rate imposed on earned incomes, efficiency gains can be reconciled with generally accepted value statements. Furthermore, as the proposal includes a universal basic income for families, child poverty could be reduced considerably. The estimates are based on the discrete choice approach to labor supply.

Keywords

Basic Income Labor Supply Microsimulation Negative Income Tax Poverty

Authors and affiliations

  • Maximilian Sommer
    • 1
  1. 1.Eichstaett-IngolstadtCatholic UniversityIngolstadtGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-319-24064-0
  • Copyright Information Springer International Publishing Switzerland 2016
  • Publisher Name Springer, Cham
  • eBook Packages Economics and Finance
  • Print ISBN 978-3-319-24062-6
  • Online ISBN 978-3-319-24064-0
  • Series Print ISSN 1431-1933
  • Series Online ISSN 2197-7178
  • About this book