TY  - RPRT
        AU  - Jaimovich, Nir
AU  - Saporta-Eksten, Itay
AU  - Setty, Ofer
AU  - Yedid-Levi, Yaniv
        TI  - Universal Basic Income: Inspecting the Mechanisms
        PY  - 2022/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15058
        UR  - https://www.iza.org/index.php/publications/dp15058
        AB  - We consider the aggregate and distributional impact of Universal Basic Income (UBI). We develop a model to study a wide range of UBI programs and financing schemes and to highlight the key mechanisms behind their impact. The most crucial channel is the rise in distortionary taxation (required to fund UBI) on labor force participation. Second in importance is the decline in self-insurance due to the insurance UBI provides, resulting in lower aggregate capital. Third, UBI creates a positive income effect lowering labor force participation. Alternative tax-transfer schemes mitigate the impact on labor force participation and the cost of UBI.
        KW  - universal basic income
KW  - labor force participation
KW  - inequality
        ER  -