Key parameters of selected universal basic income proposals, cost estimates and pilots
Annex I. Key parameters of selected universal basic income proposals, cost estimates and pilots
Inc ome
Description
Level of basic income ropos a Relationship to other benefits Target group
Financing
Objectives and (expected) results
als nd
a UBI proposals
IL O tanda s
Van Parijs and Vanderborght
USD 1163/month in the United States, BI to be supplemented by social Fiscal residents
Income tax
Expected results: BI as an
rds
(2017): partial basic income that is
USD 1670/month in Switzerland, USD assistance and social insurance
instrument to achieve social
.doc
designed to guarantee a “floor”
33/month in India for adults (~45% of
top-ups
justice, understood as a fair
x median disposable income or 90% of
distribution of real freedom
the national poverty line)
Expected results: BI as a means (2017): partial basic income
Van Parijs and Vanderborght
On average, EUR 200/month for
National social security systems EU citizens (gradual
Different options: Money
to reduce the pressure weighing throughout the European Union (or
adults (~14% of median disposable or remain intact.
phasing in, e.g. starting creation by the European
on national redistribution Eurozone)
29% of the poverty line in the EU).
with a specific age
Central Bank, financial
Benefits would vary according to the
group)
transaction tax (Tobin tax),
systems resulting from the
living cost in each of the countries.
carbon tax, capital tax; most
single market as well as promising option: value added selective immigration and tax
emigration, and to secure the European social model
Stern and Kravitz (2016)
US federal poverty line (2015), US$
UBI should not displace social
Adults 18-64 and older
Reallocation of funds from
Expected results: Raise the
1000/month for a single person, US$
security or public services,
persons 65+ who do not 126 US welfare programmes
income floor, eliminate poverty,
2000/month for a family of four
however it should replace
receive at least US$
(social assistance),
and reinvigorate the economy
(US$12,000 respectively US$ 24,000
current welfare programs (social 1,000 per month
adjustments to health system,
per year).
assistance)
taxation and increased revenue from new sources of finance
The referendum was rejected by on unconditional basic income
Switzerland: national referendum
CHF 2,500/month for adults (~56% of
Not specified
All residents
Not specified
a majority of 76.9 per cent of the (2016) (BIEN, 2018)
the median disposable income or
113% of the national poverty line)
electorate.
CHF 625/ month for children (~14% of the median disposable income or 28% of the national poverty line)
Description
Level of basic income a Relationship to other benefits Target group
Financing
Objectives and (expected) results
Davala, Jhabvala, Standing and
Expected results: BI as a means Mehta (2015): unconditional basic
Standing, as an advisor to the
Replaces means tested
All residents in a given
Four options: elimination of
to provide basic security more income for India
government of India, used the thumb
benefits.
community, province or “regressive subsidies”, tax
rule of 30% of the income of lower-
country
increases, establishment of
effectively than means-tested
income families (~8% of median
sovereign wealth funds,
schemes, remove the poverty
disposable income or 17% of the
funding by donors
and precarity trap and buffer the
national poverty line). A low level of BI
possible technological
should be built up gradually (Standing,
disruption of the labour market
Atkinson (2015, 1996): basic
Expected results: 1) reduction of participation income (PI), with a
No specified level of PI for adults;
PI replaces income tax
The PI payment is
Proposed tax reforms:
the number of people prospect of an EU-wide child basic
GBP 200/month for children (~13% of
allowances and child benefits.
limited only to those
Taxation of income above
dependent on means-tested income
the median disposable income or 27% Existing insurance-based social
who are either in paid
certain amount of earnings
of the national poverty line)
protection and pension
work, job-seekers,
benefits by half a million; 2)
schemes remain intact.
those engaged in some
57% of families would gain
PI complements existing social
kind of socially useful
under a PI, 33% would lose out
protection schemes.
activity (e.g. caring, volunteering, education or training) and those who are unable to participate due to disability and sickness.
Not specified (proposed by Federal State
Schleswig-Holstein/Germany
EUR 1,000/month for adults (~55% of
BI would replace social
All residents
Not specified
the median disposable income or
assistance benefits, child
Government)
110% of the national poverty line)
benefits and BAföG benefits
Unive
EUR 500/ month for children (~27.5%
(state-sponsored student grants
rsa
of the median disposable income or
and loans)
lB
55% of the national poverty line)
sic a Inc ome
Paine (1779): unconditional ground- Single lump sum for individuals aged
Replaces social redistribution.
All citizens.
Funded by ground-rents, paid Expected results: ground-rent
rent lump sum for adults, plus
21-50; annual pension to each person
by landowners. Death duties
as a means to reduce poverty
ropos
by compensating the landless als a and persons with disabilities
annual pension for older persons
over the age of 50 and to persons with
amount to no more than 10
disabilities
per cent of the value of
and guarantee social justice
nd
estates or 20 per cent in the
IL O
absence of an heir.
tanda s rds
.doc x
Unive
Description
Level of basic income a Relationship to other benefits Target group
Financing
Objectives and (expected)
BI pilots
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Finland: a BI pilot, implemented
EUR 560/month for adults (~26% of
BI replaces some basic social
2,000 randomly
Cost-neutral, financed by
Objectives: to assess the
ropos
within the social security system
the median disposable income or 52% security benefits, including the
selected recipients of
replacing existing benefits for
effectiveness of UBI to 1)
als
(2017-18) (KELA, 2016)
of the national poverty line)
basic unemployment benefit,
unemployment benefits the target group
promote labour market
nd a
the sickness benefit, as well as
between 25 and 58
participation and provide work
O IL tanda s
some parental benefits and
years
incentives, 2) reduce
rehabilitation benefits.
bureaucracy and simplify the
rds
Most of the earnings-related
benefit system.
.doc x
benefits are retained. The BI will
No results yet.
be deducted from the after-tax amount of the earnings-related
unemployment allowance.
Ontario/Canada: three-year BI pilots CAD 1,415.75/ month for adults
Financed by replacing existing Objectives: to assess the in three regions (planned) (Segal,
BI replaces Ontario Works and
4,000 low-income
effectiveness of a UBI to 2016; Government of Ontario, 2018) income or 80% of the national poverty Program.
(~40% of the median disposable
Ontario Disability Support
residents between 18
benefits for the target group
and 64 years
improve health and education
line); CAD 2,002.25/ month for
Child, disability and old age
outcomes as well as job
couples. In addition, up to CAD
security benefits are retained.
prospects for low-income
500/month for persons with
Income from other schemes
individuals.
disabilities. The level of basic income
such as the Canada pension
No results yet.
is reduced by CAD 0.50 for every
Plan and Employment
additionally earned dollar.
Insurance decreases the amount of basic income by CAD
1 for every dollar.
Utrecht/Netherlands: BI pilot
Objectives: to assess the (delayed by the Dutch Ministry of
EUR 972/month for individuals (~47%
Not specified
Randomly selected
Not specified
effectiveness of different policy Social Affairs and Employment).
of the median disposable income or
recipients of social
options to stimulate labour Meanwhile, similar experiments
94% of the national poverty line); EUR
assistance benefits
market participation. proposed in Tilburg, Wageningen,
1,389/ month for couples
No results yet. and Groningen are reviewed
(BIEN, 2018) Islamic Republic of Iran: universal USD 45/month per head of household Not specified
Measured results: Some UBI cash transfer programme introduced (no data on the median disposable
All residents
Fuel subsidy
recipients increased their in 2010 as replacement for energy
working hours subsidies (IMF, 2014)
income)
Description
Level of basic income a Relationship to other benefits Target group
Financing
Objectives and (expected) results
UBI experiments (conducted by institutions other than the government)
India: three BI experiments,
Measured positive impact on coordinated by the Self Employed
INR 200/month (~USD 4) for adults; in Not linked to existing schemes
6,000 randomly
Experiment financed by
financial inclusion, food Women’s Association (SEWA),
the 2nd year: INR 300 (~8% of median and programmes
selected individuals
external grant from UNDP
sufficiency and nutrition levels, UNICEF and UNDP (2009-13)
disposable income or 17% of the
from nine rural villages
and, more substantially, from
health, school enrolment levels, (BIEN, 2018)
national poverty line ); INR 100/month
UNICEF.
for children (~4% of median
Financing options were not
productive activity and
disposable income); in the 2nd year:
part of experiment.
participation of women in
INR 150
household decision making, reduction in child labour.
Namibia: Basic Income Grant (BIG) NAD 100/month (~USD 12) for adults
Measured positive impact on experiment (2008-09) (NANGOF,
Complementing other
1,000 individuals
Experiment financed from
economic activity, households’ 2009)
until the age of 60. After the end of the programmes including universal registered living in the
donations from individuals,
project, a monthly allowance of NAD
old age pension of then NAD
Otjivero-Omitara
churches, organizations and
purchasing power, children’s
80 was paid to all participants
500/month
settlement below the
donors, organized through
nutrition and enrolment rates
age of 60.
Basic Income Grant Coalition
and women’s empowerment
Namibia. Financing options were not
part of experiment.
Kenya: NGO-run BI pilot (2016-
Objectives: assess the impacts 2028) (Give Directly, 2018)
USD 23/month, unconditional benefits. Not specified
6,000 residents of a
Experiment financed by Give
Payments through mobile money
randomly selected
Directly and donations, for
of a UBI with respect to
system.
village
example from Omidyar
economic status, time use, risk-
A large-scale
Network.
taking, gender relations
experiment covering
Financing options not part of
Long-term UBI is compared to a
Unive
200 villages with about
experiment.
short-term UBI, lump sum
26,000 individuals is
payments and to a situation with
rsa lB
planned for 2017.
no scheme in place.
sic a Inc
United States: BI experiment
USD 1,0000/month
Still in design phase
1,000 randomly
Experiment financed by
Objectives: assess the impacts
ome
conducted by a private investor in
selected individuals
external grant from private
of a UBI with respect to
p ropos
two US States for 3-5 years
economic, social, and (planned) (Y Combinator, 2017)
between the age of 21
investor (Y Combinator).
and 40
physiological self-sufficiency
als
Financing options not part of
nd a
experiment.
and well-being, use of time and
money and on the recipients’
IL O
tanda s
children and those in their networks.
rds .doc
No results yet.
Unive
Description
Level of basic income a Relationship to other benefits Target group
Financing
Objectives and (expected)
Busibi/Uganda: BI experiment
USD 18.25/ month for adults;
Not specified
All residents of the
Experiment financed by Eight
Not specified
ome
(2017-) (Eight.World, 2018)
USD 9.13/ month for children (no
village Busibi (56 adults (charitable organization)
p ropos
available data on median disposable
and 88 children)
Financing options not part of
IL O tanda s
Variants of UBI (including negative income tax and annual dividend models)
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Friedman (1967): negative income
Expected results: 1) lower costs x tax proposal (similar to BI).
Benefits would vary inversely with
Negative income tax replaces
Fiscal residents who
Negative income tax
family income according to a negative
all other welfare and social
would be net recipients
and reduced bureaucracy; 2)
tax rate schedule (payment at
assistance programmes
under a BI
more support to the poor; 3)
household level)
more personal freedom; 4) increased work incentives
Alaska/USA: Permanent Fund
Measured results: 1) about one distributes part of the state’s oil
Variable annual dividend, equivalent
In the month of disbursement of All permanent
Natural resource dividends
third of dividend income was revenues to all residents
to USD 172/ month (2015), USD 85/
the dividend, support from
residents, including
used for debt reduction, 2) no (State Alaska, 2018)
month (2016) (respectively 6 % and
means-tested social assistance
children (minimum
3% of the median disposable income
programmes drops out
requirement: one year)
significant impact on labour
and 12% and 6% of the national
To compensate the temporal
supply
poverty line)
loss, a “hold harmless” programme was introduced
UBI analysis and cost estimates
Expected results: Because of Immervoll (2017)
OECD (2017); Browne and
At the guaranteed minimum-income
Replaces social insurance and
All children and working Budget-neutral UBI proposal,
(GMI) level, which is below poverty
social assistance, may also
age adults
thus using current social
low benefit levels, overall
lines, and at lower benefit levels
replace all social spending for
security and other social
poverty rates would increase
the age group
expenditures (spreading them significantly. From an economic among all children and
perspective, UBI does not act
working age people),
as an automatic stabilizer as it
abolishing tax-free
does not go up or down in a
allowances.
downturn.
Description
Level of basic income a Relationship to other benefits Target group
Financing
Objectives and (expected) results
IMF (2017)
25 percent of median per capita
Replaces social assistance and
A cash transfer of an
Financing options that are
Expected results. Depending on
income; the fiscal cost would be about subsidies
equal amount to all
budget neutral can involve
financing options, substantive
6−7 percent of GDP in advanced
individuals in a country
any combination of cutting
impact on inequality (Gini
economies and 3−4 percent in
spending (e.g. welfare) or
decreasing on average by five
emerging markets and developing
increasing direct or indirect
points); also significant
economies
taxes. Other sources of
reduction of poverty in
revenue could include
developing economies. Net
elimination of energy and
redistributive impact will depend
other subsidies
on financing mechanisms.
Nikiforos, Steinbaum and Zezza,
Simulations on economic growth using Replaces social assistance but
For all adults
Paid from the national budget Expected results: Using the
Roosevelt Institute (2017)
different benefit levels: US$1000 or
UBI is an income supplement
but not taxing individuals, if
Levy Institute macro-
US$500 for each adult/month
that does not displace Social
paying for UBI by increasing
econometric model, a UBI
Security or public services.
taxes on households, the
providing $1,000 per month for
Levy model forecasts no
all adults expands the economy
effect on the economy
by 12.56 per cent over the baseline after eight years.
This paper
At the national poverty line level,
UBI replaces main social
All residents
Financing options: Re-
Expected results: Eradication of
estimations provided for 130 countries
assistance and unemployment
allocating public expenditures poverty globally, reduction of
support, but not social
(e.g. defence, subsidies);
inequality, including gender
insurance or programmes for
increasing tax revenues (e.g.; inequalities. Thus it is an
those with special needs (e.g. to
corporate and financial sector instrument of social justice while
compensate for disability-
taxes); eliminating illicit
also increasing consumption,
related costs). If phasing-in UBI,
financial flows and corruption; economic activity and growth.
Unive
a first step are social protection
managing/ restructuring debt;
floors.
and others.
rsa
lB a sic
Note: a Monthly median disposable income data were calculated based on annual median disposable income data from the OECD in national currency, at current prices and for the year 2014 and from Eurostat, 2017:
Inc
http://ec.europa.eu/eurostat/web/income-and-living-conditions/data/database; http://ec.europa.eu/eurostat/web/gdp-and-beyond/quality-of-life/median-income. For Dauphin, data for 1979 were used. Poverty lines are defined as 50%
ome
of the median equivalised disposable income.
p ropos
Sources: As indicated in the table.
als nd
a IL O tanda s
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Unive rsa
Annex II. Universal basic income: global costing estimates
P overty line, Relative or
GDP per
Cost Cost
ome
in total
adult(LCU)
absolute
capita (LCU)
Scenario I Scenario II
ropos p als
Low income
South Asia
Upper middle income
Sub-Saharan Africa
tanda s rds
Argentina
ARG
Upper middle income
Latin America and the Caribbean
x Armenia
ARM
Lower middle income
Europe and Central Asia
High income
East Asia and Pacific
High income
Europe and Central Asia
Upper middle income
Europe and Central Asia
Low income
South Asia
High income
Europe and Central Asia
Upper middle income
Latin America and the Caribbean
Low income
Sub-Saharan Africa
15.9 13.7 Bolivia, Plurinational State of
BTN
Lower middle income
South Asia
Lower middle income
Latin America and the Caribbean
Upper middle income
Sub-Saharan Africa
24.8 22.0 Burkina Faso
BRA
Upper middle income
Latin America and Caribbean
Low income
Sub-Saharan Africa
Low income
Sub-Saharan Africa
Absolute
P overty line, Relative or
GDP per
Cost Cost
in total
adult(LCU)
absolute
capita (LCU)
Scenario I Scenario II
Low income
East Asia and Pacific
Lower middle income
Sub-Saharan Africa
37.2 34.2 Cape Verde
CAN
High income
North America
17.4 14.8 Central African Republic
CPV
Lower middle income
Sub-Saharan Africa
Low income
Sub-Saharan Africa
Low income
Sub-Saharan Africa
23.8 21.3 China (People's Republic of)
CHL
High income
Latin America and Caribbean
Upper middle income
East Asia and Pacific
Upper middle income
Latin America and the Caribbean
Low income
Sub-Saharan Africa
16.6 13.0 Costa Rica
COG
Lower middle income
Sub-Saharan Africa
Upper middle income
Latin America and the Caribbean
Côte d'Ivoire
CIV
Lower middle income
Sub-Saharan Africa
a Czech Republic
CZE
High income
Europe and Central Asia
Democratic Republic of the
COD
Low income
Sub-Saharan Africa
ropos als
Denmark
DNK
High income
Europe and Central Asia
Dominican Republic
DOM
Upper middle income
Latin America and the Caribbean
tanda s rds
Ecuador
ECU
Upper middle income
Latin America and the Caribbean
.doc x
Unive
P overty line, Relative or
GDP per
Cost Cost
rsa lB
in total
adult(LCU)
absolute
capita (LCU)
Scenario I Scenario II
Lower middle income
Middle East and North Africa
p ropos
El Salvador
SLV
Lower middle income
Latin America and the Caribbean
Low income
Sub-Saharan Africa
O tanda s
Estonia
EST
High income
Europe and Central Asia
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63.4 50.3 Finland
x Ethiopia
ETH
Low income
Sub-Saharan Africa
High income
Europe and Central Asia
High income
Europe and Central Asia
Upper middle income
Sub-Saharan Africa
Low income
Sub-Saharan Africa
Lower middle income
Europe and Central Asia
High income
Europe and Central Asia
Lower middle income
Sub-Saharan Africa
High income
Europe and Central Asia
Lower middle income
Latin America and the Caribbean
Low income
Sub-Saharan Africa
Low income
Sub-Saharan Africa
Lower middle income
Latin America and the Caribbean
Low income
Latin America and the Caribbean
Absolute
P overty line, Relative or
GDP per
Cost Cost
in total
adult(LCU)
absolute
capita (LCU)
Scenario I Scenario II
Lower middle income
Latin America and the Caribbean
High income
Europe and Central Asia
High income
Europe and Central Asia
Lower middle income
South Asia
Lower middle income
East Asia and Pacific
High income
Europe and Central Asia
High income
Middle East and North Africa
High income
Europe and Central Asia
Upper middle income
Latin America and the Caribbean
High income
East Asia and Pacific
Upper middle income
Middle East and North Africa
Upper middle income
Europe and Central Asia
Low income
Sub-Saharan Africa
a Kyrgyzstan
KGZ
Lower middle income
Europe and Central Asia
Lao People's Democratic
LAO
Lower middle income
East Asia and Pacific
ropos als
Latvia
LVA
High income
Europe and Central Asia
Upper middle income
Middle East and North Africa
tanda s rds
Lesotho
LSO
Lower middle income
Sub-Saharan Africa
.doc x
Unive
P overty line, Relative or
GDP per
Cost Cost
rsa lB
in total
adult(LCU)
absolute
capita (LCU)
Scenario I Scenario II
Low income
Sub-Saharan Africa
p ropos
Lithuania
LTU
High income
Europe and Central Asia
High income
Europe and Central Asia
O tanda s
Madagascar
MDG
Low income
Sub-Saharan Africa
rds .doc
62.9 48.7 Malaysia
x Malawi
MWI
Low income
Sub-Saharan Africa
Upper middle income
East Asia and Pacific
Upper middle income
South Asia
Low income
Sub-Saharan Africa
Lower middle income
Sub-Saharan Africa
Upper middle income
Sub-Saharan Africa
Upper middle income
Latin America and Caribbean
Lower middle income
East Asia and Pacific
Lower middle income
Middle East and North Africa
Low income
Sub-Saharan Africa
Low income
East Asia and Pacific
Upper middle income
Sub-Saharan Africa
Low income
South Asia
High income
Europe and Central Asia
Relative
P overty line, Relative or
GDP per
Cost Cost
in total
adult(LCU)
absolute
capita (LCU)
Scenario I Scenario II
New Zealand
NZL
High income
East Asia and Pacific
Lower middle income
Latin America and the Caribbean
Low income
Sub-Saharan Africa
Lower middle income
Sub-Saharan Africa
High income
Europe and Central Asia
Lower middle income
South Asia
Upper middle income
Latin America and the Caribbean
Lower middle income
Latin America and the Caribbean
Upper middle income
Latin America and the Caribbean
Lower middle income
East Asia and Pacific
High income
Europe and Central Asia
High income
Europe and Central Asia
Upper middle income
Europe and Central Asia
rsa lB a sic Rwanda
RWA
Low income
Sub-Saharan Africa
Lower middle income
Sub-Saharan Africa
p ropos
Sierra Leone
SLE
Low income
Sub-Saharan Africa
Slovak Republic
SGP
High income
Europe and Central Asia
O tanda s
Slovenia
SVN
High income
Europe and Central Asia
rds .doc
Unive
P overty line, Relative or
GDP per
Cost Cost
rsa lB
in total
adult(LCU)
absolute
capita (LCU)
Scenario I Scenario II
South Africa
ZAF
Upper middle income
Sub-Saharan Africa
p ropos
Spain
ESP
High income
Europe and Central Asia
Sri Lanka
LKA
Lower middle income
South Asia
O tanda s
St. Lucia
LCA
Upper middle income
Latin America and the Caribbean
rds .doc
33.5 29.4 Grenadines
x St. Vincent and the
VCT
Upper middle income
Latin America and the Caribbean
Lower middle income
Sub-Saharan Africa
Lower middle income
Sub-Saharan Africa
High income
Europe and Central Asia
33.2 30.7 Tanzania, United Republic of
CHE
High income
Europe and Central Asia
Low income
Sub-Saharan Africa
Upper middle income
East Asia and Pacific
Lower middle income
East Asia and Pacific
Low income
Sub-Saharan Africa
Upper middle income
Middle East and North Africa
Upper middle income
Europe and Central Asia
Upper middle income
Europe and Central Asia
43.9 33.3 United Kingdom
UGA
Low income
Sub-Saharan Africa
High income
Europe and Central Asia
Relative
P overty line, Relative or
GDP per
Cost Cost
in total
adult(LCU)
absolute
capita (LCU)
Scenario I Scenario II
pop. (%)
United States
28.4 25.7 Venezuela, Bolivarian
GBR
High income
North America
91.9 79.0 Republic of
VEN
Upper middle income
Latin America and the Caribbean
Viet Nam
21.7 19.2 Zambia
VNM
Lower middle income
East Asia and Pacific
Lower middle income
Sub-Saharan Africa
120.7 95.6 Note: The national poverty lines in this table refer to either relative poverty lines (for high-income countries) or to absolute poverty lines. Relative poverty lines correspond to 50 per cent of the median equivalent disposable income.
ZWE
Low income
Sub-Saharan Africa
Absolute poverty lines reflect poverty lines used in official national reports; in local currency units (LCU) per adult, per year, updated to the year 2015, using the respective CPI change. Absolute poverty lines are aimed to all basic needs, meaning they are different (higher) than the food poverty line. Where no national poverty line was available, but only urban and rural poverty lines, the former is used.
Sources: Own calculations based on UN World Population Prospects, IMF World Economic Outlook, ILO World Social Protection Database, OECD, national sources.
Unive rsa
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Inc ome
ropos p als
nd a IL O tanda s
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