empirical
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The program began in 2011, depositing monthly cash deposits into individual accounts at 28% of the median per capita household income. The payments were a response to the loss of e… View
The author proposes an expansion of the EITC in order to capture many of the benefits inherent in a basic income, while avoiding some of the usual points of contention and politica… View
theoretical
Many existing models assume an 'equity-efficiency' tradeoff between redistribution and efficiency. Higher redistribution is assumed to reduce work incentives, reducing overall econ… View
In 2019, the US spent $70 billion on the EITC, $60 billion on SNAP, $31 billion on TANF, and $56 billion on SSI. In total, over $217 billion was spent on these programs alone. View
"The Earned Income Tax Credit is the largest and perhaps most effective income support program in the U.S., providing roughly 63 billion dollars to about 25 million recipients in 2… View
"Results from targeted, conditional cash transfer programmes suggested that, in the USA, those that were accompanied by work conditions generally did not yield positive effects. Re… View
A UBI of $500 per person per month—$2,000 per month for a four-member household—would more than compensate for the loss of SNAP benefits (up to $192 per month for a single person a… View
"Evidence from the U.S. Earned Income Tax Credit program (EITC) may shed light on frequency’s impact in high-income economies. EITC recipient households often have limited access t… View
econometric
“Our new measure of the strength of codetermination, the Mitbestimmungsindex (MB-ix), shows a positive relationship with ‘substantive’ policies such as the adoption of targets for… View
fact
“Seventy-one percent of Democratic voters and 56 percent of independent voters believe the government should have a universal basic income program, a 15 and 12 percentage point inc… View
“The survey found an increase in support across demographic groups, primarily among younger voters and Democratic voters. Sixty-nine percent of voters ages 18 to 34 and 35 to 49 we… View
The poll ran from August 2nd - 5th in 2020, with a sample size of 2,850 registered voters. Support increased from 43% in February 2019, and 49% in September 2019. View
anecdotal
Interpreting results from the Manitoba basic income experiments in the 1970's, the author finds that contrary to concerns that universal payments act as a subsidy for low-wages, wh… View
Using municipality-level panel data, the study shows that raising the tax rate on land while lowering the tax rate on buildings leads to an increase in land value per acre. Further… View
“Results based on German establishment-level data show that skilled employees of firms with 50% labor representation on boards are protected against layoffs during adverse industry… View
In European countries where codetermination is in place, there are a variety of complementary labor institutions, such as works councils, which facilitate the overall success of th… View
US energy related carbon emissions amounted to 5.27 billion metric tons in 2018; a carbon tax of approximately $36 per metric ton would—holding emissions constant—raise $190 billio… View
“Assuming that worker representatives have an appropriate mechanism for sharing information with the workforce, worker representation on boards will increase the flow of informatio… View
Simply importing European-style labor institutions may prove difficult in the US. View
“Theoretically, codetermination and ESG provide a similar benefit, while suffering from inverse drawbacks. Both systems provide a check on short-termism and the resultant inclinati… View
“The recent performance of the German economy has begun to change the way people view codetermination. By 2016, its popularity among the German people rose to an all-time high. The… View
The analysis was performed by the World Economic Forum. Germany received a score of 87.5 out of 100, compared to the 2nd place US, with a score of 86.5. Germany’s high score is dri… View
“Once the positive long-run benefits to children are considered, many safety net programs are cost-effective. However, the current government practice of limiting the time horizon … View
There were variations in size and strength of the underlying evidence across outcomes and indicators, but the positive effect was consistent across all outcome areas. View
“However, these higher investment incentives can come at a cost to some households who may see their land value change substantially due to zoning decisions. Protection against sud… View
practical
“There is limited attention to the impact of the broader social and fiscal policy environment on outcomes within the existing body of evidence. It is widely agreed that financing a… View
“Examining the variability in interventions that are claimed to approximate a UBI is important. In countries with minimal or fragmented welfare states, the injection of cash throug… View
“There are a variety of other outcomes that have been pursued by researchers but where evidence is less certain. More research is needed on outcomes such as stigma and social cohes… View
“There is a shortage of evidence that meets most or all of the definitional features of a UBI, and the interventions covered by this report vary significantly. To arrive at conclus… View
Overall, between two-thirds to three-quarters of the payments were spent (as opposed to saved). Other popular consumption categories included clothing, rent/mortgage, and school ex… View
The growth in anti-poverty effects were due primarily to the IRS being able to reach more eligible children as the program progressed. View
“…the first Child Tax Credit payment in July 2021, on its own, reduced the monthly child poverty rate by 26 percent—keeping 3 million children from poverty whose family incomes wou… View
“We see evidence of mortgage savings from the lower prices in Canberra…where the size of average new home loans in ACT has grown far less than the other major States since the tax … View
“In all, the expectations derived from economic theory and well-established empirical evidence is that the transition to higher land value taxes will not affect the total cost of b… View
“The main lesson is that a transition to a land value tax system can be achieved without radical disruption to property markets, and will have the added benefit of reducing specula… View
“Specifically, 1,000 racially and ethnically diverse mothers in four urban metropolitan areas in the United States were recruited in postpartum wards of hospitals shortly after giv… View
However in less developed Mexican cities (well below median density), the price effects of cash transfers were stronger. The authors show that these inflationary effects are largel… View
“We introduce a UBI policy that provides each household with $11,000 per year, financed by additional taxes. This policy has different implications in the short versus the long run… View
“As we explained in the subsection on price stability, the value of the dollar is determined on the margin by what must be done to obtain it. If money ‘grew on trees,’ its value wo… View
All three conditions are required, however; if any one of them is violated, Henry George's single tax on differential land rents may provide too much or too little tax revenue. Whe… View
The transfers ranged in size from a control group receiving $0 (n=3,170), another group receiving $500 (n=1,374), and a third group receiving $2,000 (n=699). Expenditures rose in w… View
Data covers 43 million Americans from the 2000 Census, and the 2001 to 2013 American Communities Survey. Results obtained using variation from the county-level roll-out of Food Sta… View
"The Canadian negative income tax was the only experiment to track health outcomes, and it found that recipients experienced an 8.5 percent decrease in hospitalizations compared to… View
While this proposal represents a sharp break from current approaches, the authors do suggest a series of incremental changes that can smooth the path to such a basic income. View
“In discussions about the size of a UBI in the United States, two focal points have emerged: $500 per month (the figure suggested by Facebook cofounder Chris Hughes and used in the… View
A common concern over cash transfer programs is that receiving unconditional cash will discourage work. While pilot programs cannot tell us all we need to know about the potential … View
“Second, if a pure land tax were to capture all current and future rent from the landowners, the market value of the land would become zero. This would be equivalent to the governm… View
The cash transfer is conditional upon a set of behaviors designed to improve health and nutrition. These include: i) accepting preventative medical care, ii) attending nutrition cl… View
"When the control group was compared to themselves as a baseline, there was no significant change in scores on the Kessler 10. However, the treatment group showed significant impro… View
"This study’s results are summarized as follows. On an aggregate basis, a revenue-neutral LVT would shift the tax burden away from single-family residential properties and on to ot… View
“In several cases, no significant difference appears between the outputs a given type of firm would produce with the technology used by the cooperatives and with the conventional f… View
“Overall, the GLS estimates suggest that in most industries there is no significant productivity difference between labor-managed and conventional firms. This result is in keeping … View
Using The Levy Institute's model of the economy, The Roosevelt Institute ran econometric simulations to predict the effects of various levels of Universal Basic Income on the econo… View
Using the Penn Wharton Budget Model, this study ran econometric simulations to predict the effects of various basic income plans. View
A worker cooperative is a business that is entirely owned and controlled by its workers. View
This finding comes from the Penn Wharton Budget Model. View
Using The Levy Institute's model of the economy, The Roosevelt Institute ran simulations to predict the effects of various levels of Universal Basic Income on the economy. View
The authors developed a computable general equilibrium model of the New York City economy, which they emphasize has significant unknowns, and we should thus interpret results light… View
While a land value tax was originally proposed as a substitute for all other forms of taxation, in practice, local governments have explored more modest, revenue-neutral reforms th… View
“The argument that political opposition would mount against the change from uniform taxation to two-rate taxation is straightforward. The change in taxation will create winners and… View
“In Denmark citizens pay 1 per cent of the value of their property to the state for the first DKK3.04m (£343,000) of its value and 3 per cent for anything over that. There is also … View
“Ground-rents are a still more proper subject of taxation than the rent of houses. A tax upon ground-rents would not raise the rents of houses. It would fall altogether upon the ow… View
"The reason is simple: The uninsured already receive a substantial amount of health care, but pay for only a very small portion of it, especially when their medical bills are high.… View
"...most economists do not share the hypothetical concern that a UBI would cause high and general inflation, because there is no reason to assume that a UBI could not be financed b… View
. View
“But is codetermination an effective mechanism for constraining corporate power? That is the crucial question, and to answer it, this Article analyzes the mechanics, the strengths … View
"Moving away from an income-based approach will likely create a lot of taxpayer confusion. And even though the tax bills split land value and the value of improvements, these repor… View
These figures assume a LVT rate of 100%, a $1.2 trillion estimate for America’s land rents, 209 million American citizens above the age of 18, and a land share of 50%. View
In 2002, Altoona began split-rate taxation. By 2011, they shifted entirely to taxing land, with no tax rate on buildings. Five years later, they abandoned the program, returning to… View
The report for LVT in London comments: “Such a tax raises the cost of holding developable land when demand, as expressed through rising market prices, increases. This should make h… View
“Tax revenues from land continue to rise and increased by 171 per cent between 1994 and 1999. Much of this increase arose from revaluations, raising tax rates and improvements in c… View
“The most recent amendment [to the system] also contains a new section providing for a special ‘penalty tax’ on vacant lots in urban areas, raising their tax rate to 1.0 to 3.0 per… View
Harrisburg enacted a LVT in 1975, reducing tax on buildings to one-half of those on land, and eventually increased the tax on land to six times that on property. From 1982 to 2009,… View
“In 1975 the city enacted LVT as a policy tool to stimulate development and to discourage land speculation. It reduced the tax on buildings to one-half of that on land and, over a … View
“There are multiple factors driving corporations to reduce their level of reinvestment, including the growth of market concentration—and thus market power—across the economy, which… View
Programs conditional on work - like earned income tax credits - may apply minor downward pressure on wages, but the effect is more than compensated for by the overall net gains in … View
"Second, evaluations have found a great diversity of positive impacts. For example, a partial list of outcomes affected in a positive way in one study or another, according to Bast… View
Many traditional economic models assume that if workers receive unconditional transfers, like basic income, they will reduce their working hours. However, recent experimental evide… View
Many of these new entrepreneurs who were newly eligible for SNAP didn't enroll in the expanded food stamps program. Instead, as Walter Frick writes in The Atlantic, "simply knowing… View
“Some further evidence we can examine is Alaska’s inflation statistics. Alaska has had a universal basic income via the Alaska Permanent Fund Dividend, which has provided each resi… View
“The problem is not isolated to a few companies or to a few industries: In most industries, the majority of companies spent over half of their total profits on buybacks between 201… View
“The top spenders on buybacks in retail are Home Depot, Walmart, CVS, Lowe’s, and Target. On average, these companies spent 87 percent of their net profits on buybacks, and they co… View
“The terms “stock buyback” and “share repurchase” refer to the practice in which companies repurchase their own stocks from shareholders on the open market. This creates a scarcity… View
The authors find that these companies could pay the median worker an average of 25% more if they spent buyback funds on wages instead. View
“The growth of stock buybacks can be traced to 1982, when the Securities and Exchange Commission (SEC) relaxed the rules governing the circumstances in which companies could be hel… View
“Proponents of the new tax law promoted it to the American public as a job-creating and wage-boosting policy for American workers. Instead, public companies in the U.S. are spendin… View
“Proponents of buybacks argue that corporate executives conduct buybacks when other value-creating investment opportunities are unavailable, and instead use that cash to reward sha… View
This made them the industry with the highest ratio. “Professional, scientific, and technical services” was second with 72.7%, and “information” was third, with 72.4%. Data from Sta… View
“Even more disturbing, there is clear evidence that a substantial number of corporate executives today use buybacks as a chance to cash out the shares of the company they received … View
Sample size of 293. Similarly, only 9% reported negative experiences with "employee board representation" more broadly (n=411). View
Cash recipients saved a total of $17,571 compared to their baseline shelter use. Non-cash participants only saved $9,399 compared to their baseline shelter use. View
"Land value taxation was a key policy recommendation made by the Committee on Banking, Finance and Urban Affairs of the House of Representatives 96th Congress whose ground breaking… View
"In Pennsylvania 85% of homeowners pay less with this policy than they do with the traditional flat rate approach. For those who do pay more, it is not significantly more and they … View
"A recent study (Table 3) by University of Maryland economists, Wallace Oates and Robert Schwab, compared average annual building permit values in Pittsburgh and 14 other eastern c… View
"Based on this reconceptualized model, we prove that a land value tax will have at most the distortion effects of a property tax of equivalent rate, even with the worst possible la… View
"The starting point for understanding the split-rate tax's effect on sprawl is that it should alleviate the property tax's distortionary effect on the land/capital ratio, increasin… View
"Oates and Schwab (1997) and Plassmann and Tideman (2000) show that the split-rate tax increases development activity as measured by building permits. This finding suggests the spl… View
"Our central estimates, based on linear fixed effects regression, are that a split rate tax increases the growth in the total number of rooms by about 3-6 percentage points per dec… View
"Nor would it be fair or just to treat different circumstances equally for tax purposes. Two landowners may have equally sized plots of land in similar locations, but one of them m… View
"Researchers examining property tax incidence often use the Suits index to measure a tax system’s overall progressivity (Suits, 1977).19 The Suits index can vary from –1 to +1, wit… View
"Horizontal equity requires that taxpayers with equal before-tax incomes should have the same effective tax rates…Figure 4 shows that the lowest-valued properties (i.e., those grou… View
Poll by: https://smartgrowthamerica.org/about-us/our-history/ View
"A shift from property to land taxation (or the movement to a “graded” tax system under which land is taxed at a higher rate than the structures on the land) will reduce the “penal… View
"In particular, the taxing of land-values may distort the choice between earlier and later development of unused land parcels in favor of those projects that promise an earlier str… View
“Many people replied that Land Value Tax is useless until or unless you first fix zoning. First of all, Georgists are natural allies in fixing restrictive zoning policies. This is … View
Critics of LVT in Pittsburgh suggest their experience with LVT was unconvincing, largely because of the minimal impacts on development. They cite surveys that found respondents rep… View
This is because unlike other subjects of taxation, the supply of land is fixed, so raising tax rates cannot affect supply. View
Additionally, residential construction is projected to increase 1.16%, total exports by 0.19%, disposable income by 0.6%, and total population by 0.76%. View
The theoretical case for a land value tax was held in high favor by classical economists from Smith to David Ricardo, John Stuart Mill, to Alfred Marshall. View
Economic theory suggests a LVT would encourage the development of vacant or under-developed land by raising the tax burden of holding such land. View
Researchers combined statistical analysis of the effect of split-rate taxes on the number of building permits with their effect on the value per permit in order to estimate the eff… View
“Our theoretical view of local tax options suggests that LVT is a reasonably effective means of financing public transportation capital improvements by levying taxes on the portion… View
The land tax alone applies to a base of £5.5 trillion in non-governmental land value, raising £55 billion per year. Alone, this tax would raise the Gini index by 0.08%, but distrib… View
“Much of the gains from economic expansion and greater productivity are captured by higher land rent more so than higher wages or capital yields. If entrepreneurial profits in a co… View
“The economic inequality as presented in works such as Capital in the Twenty-First Century by Thomas Piketty (2014) has been a global problem, but often incompletely analysed. Crit… View
But the conclusion is divisive among those close to the Pittsburgh experience. As the authors report: "In contrast, a major official and a close observer (independently) have asser… View
"In Queensland Australia, valuations are ideally based on comparable land sales of ‘vacant or lightly improved land’, but where these are not available, improved land sales may be … View
“There needs to be a good understanding regarding what LVT is and what it is supposed to achieve and sufficient resource put behind the valuation exercise. Use of automated valuati… View
"The challenges associated with valuing land in its unimproved state are made potentially more complex if the valuation is to assume that the taxable asset (or land parcel) is assi… View
"Of serious concern to planners is the rapidly increasing rate of land consumption. Between 1970 and 1990, Nashville’s population grew by 28% while its urbanized area grew by 41% (… View
"Policy implementation in Nashville is particularly challenging because many of the policy instruments are often viewed as an infringement on private property rights that many Sout… View
By raising the tax rate on land and lowering that on buildings, LVT promotes the incentive to develop improvements on existing land, rather than building on new land. View
"Thus, the marginal effect of a land value tax on the probability of land development is greater around preexisting development than in areas distant from preexisting development. … View
"The analysis presented above shows that if the city were to adopt a land value tax in the context of its current restrictive land use practices, this new tax regime would be unlik… View
Land near public transport, in safe neighborhoods, and in close proximity to job centers all benefit from higher land values, through causes unrelated to landowners. LVT would shif… View
"The binding restriction for single family residential lots is not the lot size (in contrast to lots with commercial and multifamily buildings) but the number of dwellings allowed … View
"On the other hand, a land value tax could bring much positive change in mixed-use zones along Georgia Avenue, and to some extent along Rhode Island Avenue between 13th St. NE and … View
The letter, co-signed by leading economists, states: “The rental value of land arises from three sources. The first is the inherent natural productivity of land, combined with the … View
“The attached Appendix provides a brief technical discussion of issues of the duration of rights to use land, the transfer of land, the assessment of land, social protection agains… View
"A variety of mitigation techniques have been proposed to smooth the transition to LVT for those who are asset rich and low-income, and Oregon currently has other tax deferrals tha… View
"Specifically, people who are “land rich and income poor” pose a problem when considering a switch to LVT. One of the key motivators for LVT is to create a situation where those wi… View
If a primary effect of LVT is to spur development, there may be contexts in which further urban development is undesirable. View
"Ultimately, land-based property tax systems, whether a split-rate LVT or an AXI building exemption tax, do what they are designed to do—place more of the tax burden on wealthier l… View
“So how does an LVT affect the price of land? Using the bathtub metaphor again, let's put a valve under the tap, so half of the water goes into the tub and half goes somewhere else… View
“For the case of new housing, it is shown that the incentive effect is significant but the liquidity effect is not. The incentive effect is found to encourage increases in the numb… View
"The evidence verifies that tax capitalization appears to be occurring, but does not clearly determine the resulting price outcome. Land prices increased with a decrease in real pr… View
"...land taxes do capitalize into land values, whereas the monthly rent level remains unaffected by the land tax. In addition, the results point to significant spillovers from amen… View
This finding stands in general contrast to related findings. For an exposition of the assumptions underlying the finding, see Lars Doucet’s: Does Georgism Work? Part 2: Can Landlor… View
“The post-Corona economic environment puts a premium on finding fiscal means to stimulate the economy while continuing to finance current levels of expenditures and debt. We develo… View
If the model is tweaked to include separate groups of workers, capitalists, and landlords, the output gain remains the same while welfare gains rise to 6.4%. View
“Welfare and output gains for a wealth tax that raises the same revenue, and which increases the tax rates on capital and land equally, are only half as large as the baseline.” View
As opposed to 100%, which a full LVT would call for. View
The plan lasted from 1912 -1913, assessed land at full market value, and assessed buildings at 25%, exempting personal property from all taxation. View
However, this requires access to high quality market transaction data, which was available for the study’s sample of Berlin, but not everywhere in the U.S. View
This is only a small sampling of burgeoning methods. View
“The results demonstrate a clear effect on sales prices of the observed changes in land tax rates. Furthermore, the magnitude of the changes implies full capitalization of the pres… View
“The results imply full capitalization of the present value of future taxes under reasonable assumptions of discount rates. Consequently it gives an empirical confirmation of two s… View
Lars Doucet comments: “LVT proponents claim that an LVT can't be passed on to tenants, but Wyatt is saying that if you turn around and spend that LVT money on making your city bett… View
Many suggest that LVT is no longer viable as a single tax, given the rise in other taxation that would need to be replaced by LVT revenue. Even as one tax among many, however, the … View
“Liberal Krugman and conservative Milton Friedman both seem to agree that LVT has no deadweight loss, which means LVT, unlike income and capital taxes, doesn't create a drag on pro… View
"Economic theory suggests that a land value tax based on highest and best use (HABU) would encourage the development of vacant or under- developed land because of the increased hol… View
“Hudson (2012, 2018) has shown that most land rent is paid out as interest to banks and that bank credit is a major driver of increases in housing prices (“real estate is worth wha… View
Internationally, land represents over 40% of asset values in Spain, and 50-60% of asset values in the France and UK. View
Assumed national land rents is $1.2 trillion in 2020 (this follows the Federal Reserve’s method, using a low, 5% capitalization rate). Further assumptions include 209 million as th… View
“Bill Gates, the world's fourth richest person, owns 242,000 acres of farmland across the U.S., making him the #1 owner of private farmland in the USA. But that's just farmland. If… View
The top 1% of wealthiest U.S. citizens own 14.7% of all real estate value. The top 10% own 44.8%, and the top 50% own 88.5% (data drawn from FRED for 2021). View
They write "it guarantees that no one dispossesses fellow citizens by obtaining a disproportionate share of what nature provides for humanity"; second, “it provides revenue with wh… View
“As shown by Wallis (2000), the US has experienced three major and very different systems of government finance, and one of them, over an entire century, in fact corresponded quite… View
“A key input into our analysis is the share of land and other non-produced assets in the overall value of physical assets, which in addition include produced physical assets, mainl… View
“Policymakers can consider a range of different sizes of land tax reforms. We show that the relationship between the land tax rate and the resulting gain in output is monotonically… View
“Nevertheless, short-term concerns cannot be entirely eliminated, because the increases in output and income invariably take time to develop, as shown in Section 8, while the immed… View
“The final simulation of our study has shown just how far the stimulus effects could be taken if a radical reform is not ruled out. It shows that optimal taxation can raise more th… View
They write: "...there is a danger that you will adopt features of our [Western] economies that keep us from being as prosperous as we might be. In particular, there is a danger tha… View
"Codetermination, however, ensures that the employee representatives have access to the same information as other board members. As a result, mandatory codetermination can mitigate… View
"Does the additional capital reflect only unproductive amenities demanded by workers (such as nice break rooms) rather than directly productive capital inputs (such as machines)? O… View
"Typically, workers are either granted a minority share of the seats on their company’s board, meaning they can always be overruled by unanimous shareholders, or they are given the… View
"Second, European countries with codetermination laws have very high baseline levels of informal worker consultation and involvement in decision-making, stemming from an overall cu… View
"Third, codetermination laws coexist with other important pro-worker institutions whose influence may leave little room for codetermination to have an impact. European countries wi… View
Although recent surveys suggest codetermination doesn't grant significant authority to workers, it appears that their highest arena of influence under codetermination laws are work… View
"There is nearly unanimous agreement that worker representatives have no influence on broad strategic decisions, even when they sit on company boards. Fewer than 5% of Finnish work… View
"The evidence for a robust culture of informal worker involvement comes from interviews of European managers conducted as part of the European Company Survey. As illustrated in Fig… View
"Rather, in our view, a reading of the historical evidence supports a different hypothesis: that in countries like Germany, Norway, and Sweden, codetermination laws arose because o… View
This represents a 5% decrease from the previous year, when 59% were dissatisfied. The poll was run from January 4th - 15th, 2021. View
This represents a 25% decrease from the previous year, when 32% were dissatisfied. The poll was run from January 4th - 15th, 2021. View
This study does not focus on economic democracy specifically. They draw upon the Freedom House and Polity IV democracy indices to determine whether or not a country is democratic. View
"Overall, we take these results as suggesting that democracy might be working through a number of channels, in particular, by encouraging economic reforms, increasing human capital… View
"There is no significant interaction between democracy and the level of economic development in any of the specifications. Thus the impact of democracy does not seem to depend on t… View
"Skepticism about the performance of democratic institutions is as old as democracy itself. Plato, for example, denigrated democracy as the second worst form of government after ty… View
This quote, from 1982, comes from a survey Derek Jones and Jan Svejnar do of their empirical work studying worker participation View
Study data spanned manufacturing sectors of the USA, UK, France, and Germany from 1977 - 2005. View
"Analysts often treat buybacks as a stand-alone issue, but there is compelling research that suggests one of the main reasons companies conduct stock buybacks is to offset their ex… View
"We find that firms with equal representation on the supervisory board have a significant 26 percent decline in the market-to-book ratio, compared to firms with one-third represent… View
“In order to get a meaningful picture of the (dwindling) coverage of workplace codetermination, attention should be directed to the proportion of employees who benefit from codeter… View
The authors speculate that declines may be driven by the rising service sector economy. View
This is particularly notable given that in Germany, codetermination began at the bottom, as a negotiation between employees and employers. Only later was it codified as national la… View
-- View
“Respondents prefer to work at democratic firms in part because they intrinsically value having more power at work: Our experimental design also allows us to hold many other job se… View
"First, a McCrary (2008) test of the density of incorporations around the reform cutoff suggests that firms did not manipulate incorporation dates, e.g., by delaying incorporation … View
"Most importantly, we find that firms with shared governance have about 40 to 50% larger fixed (long-term) capital stocks – sharply contradicting the disinvestment predicted by the… View
"In contrast to the hold-up view, we find neither wage increases (or decreases) nor increased rent sharing – consistent with, and in fact helping rationalize, our first key finding… View
"When measured by EBIT(DA) over revenue, we find a reduction in the profit margin by about 5ppt. EBIT(DA) over total assets yields an order of magnitude smaller effects, insignific… View
"Shareholders are not really owners, and they exercise little control over corporate political involvement. Employees, communities, consumers, and other stakeholders exercise even … View
In practice, however, the opposite has generally been observed. View
The commission “Mitbestimmung” also discusses this point and argues that the overwhelming majority of all decisions are unanimous. View
In this study, innovation is measured by the number of patents awarded to German companies before and after codetermination laws were introduced in 1976, controlling for several va… View
"As the governance of corporations begins to take account of the interests of their stakeholders, the public voice of corporations would reflect the voices of those myriad stakehol… View
In contrast, as of 2021, 80% of equity market capitalization was owned by institutional investors. View
"In fact, there is strong evidence that companies with higher CEO pay compensate their board members more generously, a clear indication that board members are engaged in a corpora… View
As William Lazonick has argued elsewhere, in some cases, buybacks can be viewed as "value extraction that lacks a theory of value creation." View
"Yet, the literature also indicates that activist pressure has not been an overbearing presence, because there is enough “patient capital” available in the form of public financing… View
"By contrast, the Komission Mitbestimmung, tasked in 1998 with evaluating the worth of Germany’s co-determination system, concluded unanimously that co- determination promoted the … View
ESOPs—a form of worker ownership—have also been gaining policy attention recently as a means of redressing wage inequality. According to the National Center for Employee Ownership … View
"Statistical analysis of the directors' responses indicated that the percentage of positive opinions is largest in companies with more than 500 employees." View
19% reported "very positive", 42% reported "quite positive", and an additional 30% reported "as much positive as negative. Sample size was 411 corporate directors. View
"To overcome the problems inherent in cross sectional data, in the present paper we use panel data for 179 firms, from 1972-76 and from 1981-85, allowing for adjustment to the 1976… View
"To summarise the institutional set-up, industry unions bargain with employers’ associations over regional wages, and neither works councils nor employee board representatives are … View
"Most theoretical models agree that there is likely to be an optimal degree of co-determination in terms of efficiency, and ‘too much’ participation or employee representation will… View
"In the scientific discussion on codetermination it is often stated, for example, that the German system of codetermination provides very high levels of influence for employee repr… View
"Out of this, the previously stated hypothesis can be confirmed by the analysed sample of EU countries. This strongly supports Vitols (2005) results, which indicated a negative biv… View
The results show that the level of codetermination in the private sector has a strong and strongly significant impact on the income distribution on both, the EU and the OECD countr… View
In particular, the study looks at the period from 1974 - 1995, and subsequently zooms in on the introduction of the Codetermination Act of 1976. In both cases, the authors find tha… View
Thomas Donahue, the Executive Assistant to the President of the AFL-CIO in 1976 said: "We do not wish to be a partner in management – to be, most likely, the junior partner in succ… View
This sentiment can be directly contrasted with Alchian, 1984: “The campaigns for … codetermination on boards of directors appear to be attempts to control the wealth of stockholder… View
Overall, 52% of likely 2018 voters supported codetermination, and 23% opposed. View
"In Table 4 we consider a measure of accounting profitability, return on shareholders' equity. The COD coefficient was not significantly different from zero in 1975, but declined t… View
"Finally, we report the alternative approach of directly estimating total factor productivity (TFP) growth in Table 5. Again there was a negative size effect and a highly significa… View
"The change from one-third to almost-parity seems to have had a consistently negative effect on productivity and profitability, but little influence on labour cost, in our sample o… View
The global, non-US total number of stock buybacks was 9,034. Next closest was Canada, with 2,298. View
"Giving voice to citizens at their worksites is an important cultural adjunct strengthening communitarian values and expectations of responsive public officials that are central to… View
"Respondents want to work at democratically organized firms: Our results show that respondents are more likely to prefer to work at firms with workers on their corporate board, emp… View
"To provide a further sense of the economic magnitude, we directly benchmark our workplace democracy results with respect to salary offers. Because we also randomized salary offers… View
"We find little partisan polarization around workplace democracy: Despite the spillover of partisan polarization into many areas such as hiring (Iyengar and Westwood 2015), dating … View
"In the left panel, we find that respondents in general prefer to work at more democratic workplaces to the private corporation. Relative to the baseline condition, co-determinatio… View
# 1. The scope of who is covered Usually determined by a range of thresholds based on the number of employees in a firm # 2. The method of worker representation Germany and Fran… View
Labor efficiency is measured using a net hiring optimum for a sample of German firms between 1995 - 2015. Parity codetermination was found to reduce the deviation from the net hiri… View
The study suggests that the primary mechanism for doing so is by inadvertantly aligning employees and banks' interests. View
The irony of such a sentiment expressed by the CEO of among the world's largest institutional investors is noted, with amusement. View
"We then analyze investment patterns at the industry- and firm- level. At the industry level, we find that industries with more quasi-indexer institutional ownership and less compe… View
The authors find that private fixed investment in the U.S. over the past 30 years has been low, and find empirical support for the hypothesis that the under-investment is driven by… View
"In particular, Almeida et al. [2016] show that the probability of share repurchases is sharply higher for firms that would have just missed the EPS forecast in the absence of a re… View
"More importantly, the authors find a substantial negative marginal effect of below average participation on job satisfaction (close to three times the magnitude of the next larges… View
The letter notes that strong labor institutions should be a point of bipartisan agreement, as they support economic prosperity, limited government, and strong communities. View
Data was collected through exit interviews of outgoing employees across management and support staff across five firms, both for-profit and non-profit. The low sample size should l… View
"We find that a worker is paid more and faces less earnings risk if she gets a job in a firm with worker representation on the corporate board. However, these gains in wages and de… View
"On average, we find that workers moving into firms with worker representation experience a four percent increase in wages, compared with their former co-workers moving between fir… View
"The wages of workers in firms with worker representation are not only higher on average, but they are also better insured against fluctuations in firm performance. Controlling for… View
The causal connection studies a 1999 Korean law change that mandated 50% of the board be outside directors as an exogenous shock to assess the relationship between share price and … View
"The estimated effects are economically important. In our event study, large firms’ share prices rise by an average of 15% relative to mid-sized firms over a broad window covering … View
This conception is advanced by Philippe Van Parijs, who elsewhere suggests that while the highest sustainable UBI is his ideal, it is more realistic to begin with a smaller, partia… View
"When discussing a universal cash assistance program like Andrew Yang’s Freedom Dividend, one often hears, “Why\should Bill Gates get $1,000 per/month? Give it to the needy!” But t… View
Over the next 10 years, the present tax gap represents roughly $7 trillion dollars of uncollected tax revenue. The majority of uncollected revenue stems from those with top incomes… View
Paying out a UBI equal to the VAT rate times twice the poverty line (roughly $2,500 per person), the VAT would still raise an additional $247 billion per year. If the UBI were cut … View
This estimate uses the 2002 total US population of 285,933,410; provides $3,500 for persons younger than 18; $9,359 for persons aged 18-64; $8,628 for persons 65 and above; and ass… View
This program would eliminate poverty, and payments would phaseout entirely by 200% of the poverty line. Reducing the phaseout rate to 33% would have the payments phaseout by 303% o… View
“Calculating the gross cost of the Freedom Dividend is straightforward. According to an analysis of Yang’s Freedom Dividend by the UBI Center, an open source think tank researching… View
"This implies that were we to eliminate current income support programs and apply the funds towards a pure UBI, there would be a relative redistribution from low-earners to zero ea… View
“As figure B1 shows, the overall impact of each of these schemes is progressive in that those in the bottom decile enjoy a substantial increase in average income while those in the… View
Specifically, child poverty could increase anywhere between 5.8% - 10.4% depending on program design. Pensioner poverty could increase between 3.9% to 16.8%. Working class poverty … View
Findings were generated using an autoregressive distributed lag approach to cointegration and the Johansen cointegration approach, applied to annual time series data from 1963 to 2… View
This represents a 4% drop from the previous year, when 78% were dissatisfied. The poll was run between January 4th and 15th, 2021. View
This estimate comes from using the Levy Model. View
“It is most likely that housing and consumption goods will constitute the majority of the price level spike. Specifically, it would be middle-income housing or consumption goods, a… View
“The most important results for the housing market are that the lower income for those at the top leads to lower rents and prices per square foot, and to a lower home ownership rat… View
"We argue that guaranteed income policy is, in abstract, the best way to provide income support, meaning that our safety net could be improved by replacing some or all of the polic… View
In practice, this means one in four workers face a situation where earning additional income disqualifies them from welfare programs of which they are recipients, ultimately losing… View
“The official poverty rate in 2019 was 10.5 percent, down 1.3 percentage points from 11.8 percent in 2018. This is the fifth consecutive annual decline in poverty. Since 2014, the … View
The 1.1% increase is equivalent to a 0.37 hour increase. View
A fifth feature, “universal”, is included for UBI programs. View
In particular, this child allowance could be achieved by converting the current child tax credit, making it fully refundable, and increasing its value to $3,600 per child 0-5, and … View
Marginal propensity to consume is 10 times larger for low income households than wealthy households. View
“Furthermore, the BIG led to an increase in economic activity. The rate of those engaged in income-generating activities increased from 44% to 55% (counting those above the age of … View
“Shifts in employment patterns were tied to removing material barriers to full-time employment and removing time and capacity limits created by scarcity and precarity. Material bar… View
Raising the income threshold to 133% of the poverty line would've raised the cost to $635 billion. Increasing the phaseout rate would’ve reduced the cost to $219 billion. View
JFI's position paper outlines their support for $250/month as a first-step towards implementing basic income. Drawing on research from Hartley & Garfinkel (2020), they suggest even… View
Broadly, this paper suggests that the construction of the welfare state is not just a result of public attitudes, but that those attitudes are also shaped by the institutional desi… View
A common concern regarding unconditional cash transfers is that they might foster welfare dependency and discourage work. A growing list of studies find negligible impacts on work.… View
While the authors did find that codetermination and wages are positively correlated, the evidence suggests that firm size and unionization - not worker representation - are the cau… View
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The unconditional wasn't exactly unconditional. Children were required to complete high school in order to receive the money by 18. Without completing high school, they had to wait… View
“The findings also indicate that mothers who receive the exogenous increase in incomes affect the the child’s educational outcome, while fathers who receive the income affect the c… View
The experiment took place in North Carolina. View
"We find that parental interactions and experiences with the children in the affected households tend to improve dramatically. Both child and parent report improved behavioral effe… View
"It is important to note that the American Indian children had an incentive to finish high school by age 18 as they became eligible for payment of the semi-annual casino payments t… View
"The results for parental arrests indicate that parents are engaging in less destructive behavior as a result of the increased income......with regard to the criminal arrests, Amer… View
"Children report better relationships over time in the households with additional income, and parents report better supervision of their children over time in these same households… View
"It is widely recognized that a BIG can be provided by means of either a UBI or an NIT, and that each of these two mechanisms are capable of achieving exactly the same net transfer… View
"Second, after taking into account the reductions in conventional transfer payments a BIG would permit, the increase in government expenditures required to fund the NIT modeled in … View
"...In other words, the possible work-disincentive effects of a BIG are important, not only for determining the maximum BIG a society can sustain over time, but also because they u… View
"The basic income experiment did not increase the employment level of the participants in the first year of the experiment. Based on an analysis of register data, recipients of a b… View
"The effects of the basic income experiment on wellbeing were studied through a survey. Survey respondents who received a basic income described their wellbeing more positively tha… View
"Second, a UBI may lead to increased human capital investments, by both young people and adults. There is extensive evidence that credit constraints are binding on many students an… View
The Manitoba experiment tested a negative income tax; the Alaskan experiment tests a demogrant (universal payout to all citizens); the Cherokee experiment tests a more targeted dem… View
"A “pure” UBI (providing a set benefit to all regardless of income, age, etc.) funded to meet basic needs for a household without earnings would be extremely expensive, about twice… View
Support is politically polarized. 65% of democrats support, compared with only 28% of republicans. View
64% of respondents with a bachelor's degree or higher supported personally paying higher taxes, compared to only 38% of those with less than a bachelor's. 55% of democratic respond… View
This broad support spanned across part lines. 88% of democratic respondents agreed, as did 74% of republican respondents. View
"...The plans range in gross cost from $720 billion to $1 trillion, yet the baseline tax reform would offset these costs by eliminating about $600 billion in redundant tax code tha… View
"In our preferred specification, we do not detect any effect of the Alaska Permanent Fund dividend on employment, i.e. the extensive margin. We do, however, estimate a positive inc… View
"Our preferred interpretation of the empirical patterns we observe is that the null employment effect could be explained a by positive general equilibrium response offsetting a neg… View
"A representative survey of Alaskans conducted in March and April of 2017 (Harstad, 2017) shows that the dividends are popular and significant to Alaskan residents. For example, 40… View
"Under the smallest spending scenario, $250 per month for each child, GDP is 0.79% larger than under the baseline forecast after eight years. According to the Levy Model, the large… View
"Paradoxically, then, UBI seems to be a crisis demand, brandished in moments of social retreat and austerity. As politics moves to the right and social movements go on the defensiv… View
"In short, the US does not have an integrated database that can be used to target individuals or households for aid; it has a variety of systems at the federal, state and local lev… View
Presently, the U.S. lacks the infrastructure to get payments into the hands of every citizen, as the pandemic stimulus payments highlighted. But by combining existing databases, br… View
"Although generous social provision clearly increases the total tax burden on the middle classes and involves significant cross-class redistribution, it may be difficult in practic… View
"To be sure, you probably don't want to run a program that hunts out every family below the poverty line and brings them right up to it. Such a program would effectively involve im… View
"There is little to no impact on health outcomes for Swedish lottery winners, likely because of the universal healthcare system in the country." View
The review surveyed 18 empirical cases and 38 studies. Instead, in some cases, especially in developing countries, cash transfers increased employment. A few decreases in working h… View
For a simple utility function with both intensive & extensive margins, the unemployed have higher utility with basic income (BI) than unemployment benefits (UB). For a general util… View
For the non-cash control group, days homeless increased from 64% to 78%. The cash group spent 4,396 fewer nights homeless over 12 months. On average, cash recipients moved into sta… View
The non-cash control group only increased food security by 2% over the same period. Cash recipients retained greater food security across the full 12 months of the study. View
This finding is in line with the broader research, finding that recipients do not use cash transfers on "temptation goods". View
"A basic income is a crucial part of any strategy for democratic social change because, unlike a capital grant, it could help break the long-standing link between income and employ… View
From a study focusing on Mexico. View
While experimental results generally suggest the Alaska Permanent Fund dividends either decreased inequality, or had no effect, these cannot rule out the long-term possibility that… View
Headline results included an increase in average reading achievement in children grades 4 through 6. No beneficial effects were observed for older children. View
"Two features of the dividend—it is an equal distribution to all residents and it is taxable as personal income by the federal government—contribute to it helping to level the inco… View
"As expected, recipient households report significantly higher total expenditure: USD PPP 293 more expenditure than eligible households in control villages (Table 1, column 1), an … View
"Examining labor supply specifically, we do not find evidence that recipient households worked less; if anything, total hours worked by recipient households in agriculture, self-em… View
Fiscal multipliers measure the effect that increases in government spending have on a nation's economic output. A multiplier of 1 implies every additional dollar spent yields an ad… View
Temptation goods are the likes of alcohol, tobacco, or drugs. These results hold across 28 separate studies spanning three continents. Only one study found a rise in temptation goo… View
"In particular, perceived future risks are more damaging to mental health than realised volatility...For both genders it is the case that subjective measures of economic insecurity… View
Orthodox assumptions held that providing direct cash aid without a work-requirement would discourage work. These findings, in-line with a slew of other research on unconditional ca… View
"Guaranteed income programs are universal rather than targeted; they are not conditioned on unemployment, training or other activities; and they utilize a “pay now, tax later” appr… View
Referencing Johannes Haushofer and Jeremy Shapiro's study,“The Short-term Impact of Unconditional Cash Transfers to the Poor: Experimental Evidence from Kenya”. View
"Decades of research on unconditional cash transfers (guaranteed income or otherwise) has consistently demonstrated that providing unrestricted aid does not lead to gambling, drug … View
"It is clear that typical Jobs Guarantee proposals would offer more substantial aid than a guaranteed income but to a small subset of individuals and households (those with adults … View
"Two authors double-screened 1,147 records of potentially relevant studies, finding 38 studies suitable for inclusion in our meta-analysis, covering 100 outcomes and a total sample… View
In particular, the authors find that poverty drives stress and negative affective states that lead to short-sighted and risk-averse decision-making, perpetuating the cycles that te… View
The author's model finds that doing so would decrease macroeconomic aggregates, largely driven by a drop in labor supply in response to the higher tax rate. View
"From an institutionalist perspective, the creation of the social product is entirely a social activity and is more than the result of the efforts of individuals involved in the pr… View
"It is unclear how common this perspective was, as firms were given little space for detailed commentary. One other business-owner made a short but substantive comment. As an emplo… View
"It is often hypothesized that a guaranteed annual income will facilitate a ‘low-road’ economy as government top-ups free employers to reduce wages. To the contrary, this article l… View
Specifically, the correlation coefficients with univeralism are -.59 for the Gini Index, .73 for public social expenditures, .67 for the redistribution index, and .56 for poverty r… View
“He [Henry George] also cited equity reasons for the 'single tax' on land. Namely, increases in land value (exclusive of improve- ments) in the early 1900s were due primarily to an… View
Since 2000, the rate of new business formation has been decreasing at an accelerating rate. Thus, the balance of businesses in the US economy is shifting towards older, incumbent b… View
"Finally, I show that the empirical results are driven entirely by newly-eligible households that did not enroll, suggesting uninsured risk from leaving wage employment is the prim… View
These findings refer to data from the State Child Health Insurance Program, and the 15% raise in self-employment occurred in parents. View
In this case, entrepreneurship is measured as firm formation, and safety net data was taken from the State Child Health Insurance Program, a large-scale public healthcare program s… View
Much has been said about the relationship between overall government spending and entrepreneurship (generally chiding the stifling bureaucracy of 'big government'), but we can go a… View
Of the entrepreneurial jobs that were created, they displayed higher productivity than the incumbent jobs they displaced, leading to an overall rise in productivity. The authors ex… View
The UBI amount is based on family size and composition. It would be provided quarterly to each family, for an annual reimbursement equal to two times the poverty line, multiplied b… View
In general, current empirical studies find that codetermination either has neutral or slightly positive economic effects. While this study found a small increase in productivity, t… View
A $500 per month benefit limited to adults financed solely by a carbon/consumption tax would reduce child poverty only to 10.3%. View
"Coefficients in Model 1 show that a one-unit increase in universalism is associated with a 4.8 point increase in redistribution, which is roughly the difference in redistribution … View
Among a cohort of developed countries, the US has the lowest universalism index (measure of welfare programs), and the lowest support for redistribution. View
In 2020, the federal poverty line was $12,760 for an individual, or $26,200 for a family of four. This places the economic security line at $25,520 for an individual, or $52,400 fo… View
Early results from a series of negative income tax experiments in the US found that recipients of unconditional cash significantly reduced their employment hours. Subsequent resear… View
The positive effects were concentrated mostly in men, leaving female entrepreneurship rates mostly unchanged. The same pattern of findings applies to self-employment, with initital… View
Results were found from a test group of low-income Indian manufacturing workers receive a cash infusion plus earlier paychecks (increasing overall liquidity). The extra cash was us… View
Individuals earning €48k per year would pay €24k in taxes, while receiving the €12k UBI, yielding €12k in net taxes, for a 25% net tax rate. At the top, individuals earning €600k w… View
Extrapolating a similar payment to the US, the authors find that 66,000 annual cases of childhood obesity could be averted, on average, resulting in medical savings of roughly $310… View
“However, this Article argues that understanding codetermination solely as an instrument to protect employees or to improve corporate governance and/or performance fundamentally un… View
As economies evolve, so do they methods they use to meet their challenges. These authors argue that growth, once the primary target of economic development, must now be balanced am… View
In this model, optimal welfare is determined using Kolm's social welfare function. View
Here, financial insecurity is defined as a subjective report of one's sense that they can afford what they need now, and in the foreseeable future. This sense of financial (in)secu… View
The researchers use a microeconometric model of labor supply, and Kolm's social wefare function to assess the optimality of different welfare programs. That status-quo performed th… View
"Many people may today be working longer hours than they would wish, while others have no work at all; basic income could encourage shorter hours and thereby release working time f… View
Keynes theorized that redistribution moves cash from the wealthy to lower-income people who are more likely to spend each additional dollar received. On the whole, cash benefits co… View
Alaska's Annual Permanent Fund is a publicly-managed investment portfolio funded by a 25% tax on oil sales. Operating since the early 1980's, residents have received an annual paym… View
A review of 14 studies on the impact of cash transfer interventions on infant health. The study suggests that unconditional programmes yielded more positive outcomes regarding birt… View
“All three low-income-targeted unconditional programmes demonstrated mainly improved outcomes during the first year of life. The Gary Experiment yielded 117.6–530.4 g higher birth … View
"Reforms to the US welfare system were associated with an increase in infant mortality rate for children of foreign-born Mexican women of 3.1 deaths per 1000 live births (SE: 0.001… View
“While our review uncovered only 14 papers, which together yielded some mixed results, 3 patterns stood out. First, in both low-income/middle-income and high-income countries, cash… View
The paper arrives at the estimate by first reviewing the statistical association between children growing up in poverty and their earnings, propensity to commit crime, and health l… View
Even after accounting for benefits from welfare program transfers that are excluded from official poverty numbers, 27.6 million Americans remained below the poverty line. According… View
Presently, the U.S. has a number of overlapping welfare programs, requiring eligible recipients to fill out numberous forms for various agencies, presenting adminsitrative hurdles … View
"Economic theory suggests that the availability of a NIT might lead some to work less than they would in its absence. According to theoretical models, individuals’ hours of work ar… View
However, the authors go on to question the validity, and magnitude, of these findings. Even taken at face value, they don't represent the mass exodus from the labor market some exp… View
"The NIT was shown to positively affect the academic test scores of children in some sites and increase high school completion rates by as much as 25% to 30% in others (Hanushek, 1… View
In 2021, this number of respondents reporting themselves as either very or somewhat satisfied with "The nation's efforts to deal with poverty and homelessness" was down to only 18%… View
"...at any given moment, tens of millions of people - both employed and thinking about employment - are making a complex calculation as to how many hours of paid labor they need to… View
Any form of basic income that reduces the benefit payment as one's income increases has a "phaseout rate" of the benefit. Higher rates mean each additional dollar earned loses a la… View
As a 'back of the envelope' calculation, these estimates make simplifying assumptions to provide a ballpark range. Gross cost refers to the total revenue required to implement the … View
As a 'back of the envelope' calculation, these estimates make simplifying assumptions to provide a ballpark range. The net cost refers to the cost of the program after taking into … View
An equivalent negative income tax is estimated to cost roughly half as much, while achieving equivalent redistributional outcomes. View
Market economies are premised upon the notion of 'voluntary exchange' - then indivuals are not coerced into accepting trades in the marketplace. But some political philosophers sug… View
"Recent research also shows that prices have risen more quickly for people at the bottom of the income distribution than for those at the top — a phenomenon dubbed “inflation inequ… View
"...for a given budget constraint, each dollar disbursed on a guaranteed income is one not spent on other necessary programs, so it is reasonable to ask about cost-effectiveness: w… View
"In my second counterfactual exercise, I implement Andrew Yang’s proposal of UBI. I let the level of transfers be of US$12,000 annualy to each agent in the economy. In this scenari… View
The author constructs an econometric model of the US economy by developing an overlapping generations model with idiosyncratic income risk, inclusive of intensive and extensive mar… View
All welfare programs requires some degree of administration costs. Knowing these costs can help us measure their efficacy against simply disbursing cash equivalents to all citizens… View
A dynamic equilibrium model using data from the US during the years 1990 - 2011 was used to compare UI to UBI. The authors write: "One way to think of why UI so clearly dominates … View
"We now want to compare both policies. As previously noted, both UI and UBI programs are significant improvements over the laissez-faire, i.e., self-insurance shown in the first li… View
"Second, there is a negative relationship between the magnitude of the transfers and per-capita GDP, which decreases by 9% under the optimal NIT. The reason is simple: leisure is a… View
"The composition of the labor force also changes: high-productivity agents increase participation at the expense of low-productivity agents. This is reflected by the fact that alth… View
Two of the largest unanswered questions around basic income - how best to pay for it, and how much to pay - depend on questions regarding human behavior where economic models and r… View
The number of small-scale basic income experiments in the US has grown significantly in recent years. As new small-scale experiments continue to be announced, the question looms: w… View
"The major findings of this paper can be briefly summarized. Estimates computed with interview data collected during the SIME/DIME experiment indicate that husbands, wives, female … View
Economic arguments include work incentives and wage depression. Moral arguments include creating a realistic 'exit option' for recipients, allowing them to leave undesirable arrang… View
The current Earned Income Tax Credit (EITC) provides a basic mechanism that could be updated & expanded to capture many of the benefits of a basic income, while establishing it all… View
"60% of government spending to expand Medicaid to new recipients ends up paying for care that the nominally uninsured already receive, courtesy of taxpayer dollars and hospital res… View
Darrick Hamilton, Naomi Zewde, & co. released a proposal for a basic income that would (nearly) eliminate poverty. The payment would begin at $12,500, and begin phasing down at $10… View
Many existing welfare programs are opt-in, requiring eligible recipients to fill out various forms and paperwork to receive benefits. Even among the already eligible, many programs… View
JFI's position paper outlines two distinct spheres of welfare programs: income-assistance, and public insurance. They suggest that basic income can be a good replacement for income… View
"Means-testing causes further problems when benefits are distributed throughout the yearin regular payments rather than in annual lump sum (a common feature in guaranteed income pr… View
"The reforms to the Child Tax Credit (CTC) under the Biden administration (which they hope to make permanent) substantially improve upon the previous CTC by removing its work-condi… View
"Even the Social Security Administration must deal with the problem of the “unbanked” or “underbanked.” Though most SSA program (OASDI, SSDI, SSI) beneficiaries receive their benef… View
"It is not yet clear whether Guaranteed Income should be disbursed in small, regular payments. Given the harmful effects of income shortfalls and the prevalence of income volatilit… View
Simply by consolidating existing patch-work welfare programs and raising progressive income taxes, a small basic income of around $250 per month could be paid for. However, program… View
This analysis was provided by Jeff Sessions, ranking member on the United States Senate Budget Committee. View
While it's tempting to evaluate guaranteed income programs based on their sticker price, evaluating their overall impact requires factoring in the effects of funding strategies, su… View
Breaking from decades of welfare strategies, President Biden expanded the child tax credit in July 2021, providing payments to all families below a given income threshold. Many hav… View
Data was collected from the British Household Panel Survey. Headline findings included that perceived future risks are more damaging to mental health than actual, realized volatili… View
The two main sources of gains are improvements to children's health & longevity ($650 billion), and increased future earnings of recipients' children ($80 billion). View
Codetermination in Europe relies on related labor institutions, like widespread union representation and collective bargaining. These elements are crucial not only in understanding… View
A 2021 review of the existing evidence on codetermination, concentrated in Europe. View
"The available evidence indicates that the European model of codetermination is neither a panacea for all of the problems faced by 21st-century workers, nor a destructive instituti… View
“Our overall conclusion in this section is that the existing empirical evidence points to nonexistent or very small positive effects of codetermination on key proxies for worker we… View
"The qualitative evidence paints a picture of an institution that gives workers some control over their immediate working conditions, but grants them negligible authority beyond th… View
In addition, the authors consider two additional explanations for codeterminations negligible economic impact in Europe: a higher existing baseline of informal worker participation… View
“Overall, much of the practical infrastructure of codetermination in European countries relies on the near-universal presence and widespread legitimacy of union representatives. Th… View
“Cooperative industrial relations may be a crucial complement to codetermination. A long-standing hypothesis is that the effects of increasing worker power crucially hinge on the p… View
Study uses panel data set of 63 firms covering years between 1970 - 1985, concluding that parity-codetermination (1/2 board representation) is associated with lower productivity bu… View
"ML [machine learning] tools allow corporations to leverage their power in unprecedented ways. For the first time, corporations are able to engage in first degree price discriminat… View
“Allowing employees to elect a sizable portion of corporate directors in large corporations imposes an effective check on the power of shareholders and managers. Thus, codeterminat… View
“To protect democracy from excessive corporate power, it would be sufficient to impose mandatory codetermination at a handful of the nation’s largest corporations. In other words, … View
"Which role corporations ought to play in the democratic process is controversial. Some scholars hold the view that corporate involvement in politics is inherently problematic, whi… View
“For example, in 2020, the Committee on the Judiciary of the House of Representatives wound up a lengthy investigation of four big “tech” firms— Amazon, Apple, Facebook, and Google… View
"Moreover, codetermination also deconcentrates power in a more substantive sense in that it gives power to a group — employees — with highly diverse interests. Employees have inter… View
“...CEOs in firms that are subject to codetermination have a strong incentive to refrain from using corporate funds to lobby Congress or administrative agencies in ways that benefi… View
"Tellingly, European countries with strong codetermination regimes — Austria, Germany, Luxembourg, Denmark, Sweden, and Finland — tend to have remarkably low levels of corruption, … View
The authors suggest that the potential benefits of codetermination, such as sharing information between employers and workers, depend on widespread collective bargaining. Without i… View
"In other words, while Germany’s codetermination regime may render hostile takeovers more challenging, it is not clear that the number of hostile takeovers would be much higher in … View
The U.S. is already familiar with incentives that drive companies to base themselves in foreign countries whose corporate tax laws are more hospitable. If U.S. companies were now a… View
Given the differences in business dynamics between the U.S. and Germany, a concern over codetermination is that giving workers voting power would reduce events such as mergers and … View
Giving employees voting power in corporate decision-making processes may help mitigate conflicts at the source. During periods of upheaval that tend to pit the interests of corpora… View
Even the walk-backs were not absolute, and in the Czech Republic, did not last. Hungary retained codetermination for firms with two-tier boards (covering most firms in Hungary), an… View
“The relatively soft constraint imposed by codetermination becomes especially apparent if one considers other mechanisms that the U.S. Congress has used or could use to tame concen… View
As the European experience suggests, codetermination mandates do not necessarily confer workers meaningful power. As the authors write: "If a codetermination statute is to contribu… View
“If limited liability companies are exempt from codetermination, the problem of regulatory arbitrage arises. Entrepreneurs seeking to avoid codetermination may form limited liabili… View
Survey data from nearly 300 Swedish managing directors was gathered from 1984, 1996, and 1998 to assess their experience with codetermination. View
Survey included 293 Swedish managing directors in 1996. View
From the source: "One of the less obvious costs of codetermination lies in the need to reduce the flexibility of corporate law to prevent regulatory arbitrage. Corporations may see… View
This finding holds for both males and females. As other insights from this paper show, expectations of worsening financial situations are more harmful to mental health than the rea… View
This paper used data from the British Household Panel Survey to explore the effects of economic insecurity on mental health in the working age UK population. While much literature … View
The authors use a dynamic general equilibrium model with uninsurable idiosyncratic risk, and replicate the distribution of income and wealth in the United States. Increasing margin… View
Neoclassical theory has long held that redistribution comes at the price of economic growth. A review of the existing macroeconomic data by the International Monetary Fund, using a… View
The study compared the effects of cash transfers, a five-week psychotherapy program, and a combination of both among 5,756 individuals in rural Kenya. Psychotherapy alone had no me… View
The Finnish form of codetermination uses a relatively low threshold, granting workers the right to elect up to 20% of the board at large companies. This suggests that the percentag… View
The authors preferred interpretation of the results is as finding the absence of negative effects. The positive effects are methodologically precarious, but the absence of negative… View
Different degrees of codetermination confer workers with varying degrees of power. In Finland, workers at firms with greater than 150 employees have the right to elect up to 20% of… View
Relative to the US, Finnish workers benefit from far more robust labor institutions. View
Job separations include voluntary separations, like leaving for another company, and involuntary, like getting fired. The study found about a 7% reduction in job-to-job transitions… View
Reduced separation rates into non-employment may suggest reduced layoffs and increased job security. View
While surveys suggested small increases in perceived job quality, other findings studying revealed preferences found no evidence of significant increases in job quality. View
While Finnish codetermination had little impact on executive compensation, by slightly raising wages for the lowest wage-earners, it reduced overall inequality within firms. View
Codetermination is sometimes suggested as one potential remedy for the growing inequality between worker and executive pay. The authors find that in Finland, codetermination had li… View
The "hold-up hypothesis" suggests that giving workers power in corporate governance will lead to an increase in labor's share of firm profits. Evidence from Finnish codetermination… View
The authors note that, if anything, their estimates suggest codetermination had a marginally significant positive effect on firm survival. View
The Finnish introduction of codetermination in 1991 gave workers the right of up to 20% represenatation on company boards, compared with Germany's 50%. Consistent with studies else… View
Contrary to the "hold-up hypothesis", which predicts involving workers in corporate governance will distort incentives away from capital investment, Finnish codetermination is gene… View
A survey of Swedish stakeholders with experience in codetermination yielded broadly favorable attitudes towards codetermination, across both workers and executives. View
One concern regarding codetermination is that it may grant workers too much power, biasing firm decisions towards labor at the expense of capital formation. Most existing studies f… View
Some worry that passing a codetermination mandate would motivate companies to organize just beneath qualifying criteria to avoid the mandate. In Finland, this study finds no eviden… View
In practice, codetermination may confer less real power to workers than theory suggests. In Finland, the specifics of the codetermination mandate have left workers reporting neglig… View
Since the 1970's, workers have lost significant bargaining power, while executive pay has skyrocketed. View
The growing disparity between executive and worker compensation is a significant factor in rising inequality. View
Immigrant-led innovation also appears to fuel the adoption and diffusion of ideas across borders. View