Public interest in basic income schemes have been increasing over recent years. Fears over rising inequality (particularly in the wake of COVID-19), that automation may destroy jobs, and the nature of tax and welfare reforms, are key factors stimulating this renewed interest.
There is already evidence suggesting that technological change, for example, is leading to widespread declines in the labour share (e.g., IPR, 2022). As technological change – such as automation – may lead to high levels of job losses, particularly in low-skilled occupations, it can leave the lowest-income households without a primary source of income and stimulate further increases in income inequality
Research into the microeconomic (i.e., small-scale) impacts of basic income-like schemes on individuals and households has been steadily increasing, however, few research studies consider how such policies may affect entire economies. Consequently, there is limited evidence on which to base a comprehensive account of potentially transformative policy interventions.