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.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: basic income; unemployment; efficiency wage
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity

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