author: Cieplinski, A., D’Alessandro, S., Distefano, T., & Guarnieri, P. year: 2021 title: "Coupling environmental transition and social prosperity: A scenario-analysis of the Italian case" publisher: Structural Change and Economic Dynamics uri: https://doi.org/10.1016/j.strueco.2021.03.007 pubtype: article discipline: economics country: Italy period: 2010-2014 maxlength: targeting: implicit group: workers data: ISTAT national accounts 2010,2014; EU-KLEMS LM data design: simulation method: dynamic macrosimulation model sample: unit: individual representativeness: national causal: 1 # 0 correlation / 1 causal theory: 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.