limitations:models assumption of workers accepting lower income and consumption levels for work time reduction
observation:
- intervention:regulation (working time reduction)
institutional:1
structural:1
agency:0
inequality:income
type:0# 0 vertical / 1 horizontal
indicator:1# 0 absolute / 1 relative
measures:Gini; employment rates
findings:working time reduction policy significantly increases employment; significantly decreases income inequality
channels:significantly decreases aggregate demand
direction:-1# -1 neg / 0 none / 1 pos
significance:1# 0 nsg / 1 msg / 2 sg
- intervention:ubi
institutional:1
structural:1
agency:0
inequality:income
type:0# 0 vertical / 1 horizontal
indicator:1# 0 absolute / 1 relative
measures:Gini
findings:decreases income inequality; negative impact on environmental outcomes
channels:sustains aggregate demand
direction:-1# -1 neg / 0 none / 1 pos
significance:2# 0 nsg / 1 msg / 2 sg
notes:
annotation:|
A simulation study on the income inequality effects of both a policy targeting a reduction in working time and the introduction of a universal basic income in Italy.
It finds that while both decrease overall income inequality, measured through Gini coefficient, they do so through different channels.
While provision of a universal basic income sustains aggregate demand, thereby spreading income in a more equitable manner,
working time reductions significantly decrease aggregate demand through lower individual income but significantly increases labour force participation and thus employment.
It also finds that through these channels of changing aggregate demand, the environmental outcomes are oppositional, with work time reduction decreasing and UBI increasing the overall ecological footprint.
One limitation of the study is the modeling assumption that workers will have to accept both lower income and lower consumption levels under a policy of work time reduction through stable labour market entry for the results to hold.
