Behavioural Effects of a Citizen’s Income on wages, job security and labour supply

Journal article


Gray, A (2017). Behavioural Effects of a Citizen’s Income on wages, job security and labour supply. Citizen’s Income Newsletter. 2017 (2), pp. 4-12.
AuthorsGray, A
Abstract

What would be the effect of a citizen’s income (CI), aka basic income or BI, on wage levels – how would employers respond to its introduction? What would be its effect on the supply of labour, and on the total amount of paid work done in the economy? Would we still need a legally enforced minimum wage? This article explores the behavioural effects of a BI, on workers, jobseekers and employers. It first examines contrasting hypotheses as to the effects on wages and labour supply, then use official data to make a rough estimate of these effects for individuals in different socioeconomic and household circumstances. Analysis indicates that a Minimum Wage will remain essential after the introduction of a modest BI, to prevent the latter substituting for wages and job security, especially in the case of individuals in less advantaged circumstances.

Keywordsbenefits citizens' income welfare
Year2017
JournalCitizen’s Income Newsletter
Journal citation2017 (2), pp. 4-12
PublisherLondon South Bank University
Publication dates
Print01 Apr 2017
Publication process dates
Deposited05 Dec 2017
Accepted10 Oct 2016
Accepted author manuscript
License
CC BY 4.0
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https://openresearch.lsbu.ac.uk/item/86zx8

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