Munich Personal RePEc Archive

A model of conditional and unconditional social security in an efficiency wage economy: the economic sustainability of a basic income

Groot, L.f.m. and Peeters, H.m.m. (1997): A model of conditional and unconditional social security in an efficiency wage economy: the economic sustainability of a basic income. Published in: Journal of Post-Keynesian Economics , Vol. 4, No. 19 (1997): pp. 573-597.

[img]
Preview
PDF
MPRA_paper_23518.pdf

Download (632kB) | Preview

Abstract

This article identifies the circumstances under which the introduction of a basic income in an efficiency-wage economy leads to the desirable effects of lower unemployment, nondecreasing real incomes and profits, and an increase of secondary- versus primary-sector wages. The model analyses show that a moderate basic income can be compatible with lower unemployment, higher GDP,higher real incomes for workers, lower income inequality between workers, but a lower real income for the (voluntary) unemployed.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.