Redistribution

insights

If redistributive programs do not discourage work, then guaranteed income paired with high phaseout rates optimizes social welfare functions UBI and NIT can have identical redistributive effects. Higher welfare universalism is positively correlated with redistribution, poverty reduction, and social expenditures, while negatively correlated with inequality levels. Taxing rising land values allows for the redistribution of landlord's unearned gains arising from city growth. A one unit increase in universalism is associated with a 4.8 point increase in redistribution. Citizens living in countries with higher levels of universalism tend to maintain stronger support for government redistribution.

sources

Redistribution, Inequality, and Growth Efficient Redistribution The Case for Welfare State Universalism An Introduction to Two-Rate Taxation of Land and Buildings The Relative Costs of a UBI and a NIT Optimal Income Transfer Programs: Intensive Versus Extensive Labor Supply Responses

authors

Charalambos G. Tsangarides Andrew Berg Jonathan D. Ostry Keith A. Bender Virgiliu Midrigan Corina Boar Alain Noël Olivier Jacques

reports

Basic Income Land Value Tax