Forschungsprojekt ::

EUBIS: Fiscal Equalization via a European Basic Income Scheme

Projektbeschreibung

This research project contributes to the ongoing debate on fiscal equalization and poverty reduction in the European Union. We examine the impact of the different transfer mechanisms under consideration (risk-sharing or equity). Thus, besides assessing the impact of a European Unemployment Insurance System, the focus of this project is to develop and examine a Basic Income Scheme on the European level as well. The transfer mechanism we apply is a lexicographic Rawls-Sen-mechanism that targets the social budget so that Europe’s poorest households are prioritized.
The main research questions to be addressed are the following:
a) What budget is needed to implement a feasible EUIS? Using this budget, to what extent can a EBIS be implemented? Is the minimum income sufficient to eradicate extreme poverty in the EU? What are the impacts of these schemes on poverty alleviation and income distribution? Under both regimes, who are net payers and the net beneficiaries, both on a household level and on a regional level?
b) How do the two regimes react in times of sharp economic decline? Are the resources efficiently allocated, i.e. to what extent do the most vulnerable households benefit from either regime?
c) How can a EUIS or a EBIS be implemented on the national level? Do national welfare programs offset the impact of a European program and if so, to what extent?