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Universal basic income in the context of biased technological change
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Resumo(s)
In the last decades, income inequality has been on the rise in theU.S. The growing skill premium suggests the pivotal role of skill-biased technological change (SBTC) in promoting the observed in-crease in inequality levels. In this context, labor income tax struc-tures have been central to the policy debate. I develop an overlap-ping generations model to perform a welfare evaluation of Univer-sal basic income (UBI) tax structures and verify how these interactwith SBTC. I find that an UBI system would have improved so-cial welfare in 2010 when compared to the existing tax system anddetermine that this result is primarily motivated by SBTC.
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Palavras-chave
Income inequality Skill premium Optimal taxation Universal basic income