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Cover Finance & Development
Back to Basics: What Is Universal Basic Income?
Maura Francese and Delphine Prady

What Is Universal Basic Income? Proponents hail simplicity and equity; skeptics worry about fiscal cost and incentives Maura Francese and Delphine Prady MANY GOVERNMENTS PAY pensions to elderly people, or unemployment benefits to those who lose their jobs, or child benefits to families. Cash transfers to households are common in most countries. What is a universal basic income, and how is it different from these programs? Universal basic income is an income support mechanism typically intended to reach all (or a very large portion of the population

Keywords:
FD; F&D; income; worker; remittances migrant; population aging; economy; social insurance policy; governance of migration; s story; desk drawer; Personal income; Women; Income inequality; Global; Africa; Europe; East Asia; South Asia; Tax allowances; Social assistance spending; bond VigilanteBook review; time TravelerStraight talk; ProtectionPoint of view; cash transfer; participation income; income-support program; income support mechanism; means-tested program
Cover IMF Working Papers
Front Matter
Mr. Eswar S Prasad and Ms. Francesca Utili

Front Matter Page Research Department Authorized for distribution by Peter Isard Contents Summary I. Introduction II. Main Empirical Features A. The Broad Picture B. Some Disaggregated Perspectives C. Wage Dynamics D. Sectoral Employment and Wage Structures E. Sectoral Shifts and Labor Reallocation III. Labor Market Institutions and Their Effects A. Income Support Mechanisms B. Wage Dispersion IV. The Structure of Earnings and Employment: Evidence from Micro Data A. Earnings B. Employment, Unemployment, and

Keywords:
WP; unemployment rate; employment-population ratio; employment probability; wage differentiation
Cover IMF Working Papers
The Italian Labor Market: Stylized Facts, Institutions, and Directions for Reform
Mr. Eswar S Prasad and Ms. Francesca Utili
This paper provides a synthesis of existing and new empirical perspectives on the structure of the Italian labor market, using data at different levels of disaggregation. The analysis indicates that aggregate data mask considerable disparities in labor market outcomes across regions and demographic groups. The evolutions of sectoral wage and employment structures also point to some dimensions of labor market rigidities. A micro data set with individual data is then used to highlight key structural problems that affect labor supply and demand. The implications of these different strands of empirical analysis for the formulation and effective implementation of labor market policy are then discussed.
Keywords:
WP; unemployment rate; employment-population ratio; employment probability; wage differentiation; Employment and wage structures; labor market institutions; rigidities; policy implications; labor force; average earnings; wage contract; income support; indexation system; employment growth; temporary work; replacement ratio; earnings differential; employment intermediation; Wages; Employment; Labor markets; Labor force; Europe; nominal wage growth
Cover IMF Working Papers
Universal Basic Income: Debate and Impact Assessment
Maura Francese and Delphine Prady
This paper discusses the definition and modelling of a universal basic income (UBI). After clarifying the debate about what a UBI is and presenting the arguments in favor and against, an analytical approach for its assessment is proposed. The adoption of a UBI as a policy tool is discussed with regard to the policy objectives (shaped by social preferences) it is designed to achieve. Key design dimensions to be considered include: coverage, generosity of the program, overall progressivity of the policy, and its financing.
Keywords:
WP; UBI; income; cost; program
Cover IMF Working Papers
Generational Aspects of Inclusive Growth
Mr. Benedicte Baduel, Asel Isakova, and Anna Ter-Martirosyan
Sharing economic benefits equitably across all segments of society includes addressing the specific challenges of different generations. At present, youth and elderly are particularly vulnerable to poverty relative to adults in their middle years. Broad-based policies should aim to foster youth integration into the labor market and ensure adequate income and health care support for the elderly. Turning to the intergenerational dimension, everyone should have the same chances in life, regardless of their family background. Policies that promote social mobility include improving access to high-quality care and education starting from a very early age, supporting lifelong learning, effective social protection schemes, and investing in infrastructure and other services to reduce spatial segregation.
Keywords:
inequality; inclusive growth; youth employment; elderly poverty; intergenerational mobility; WP; social mobility; youth labor market outcome; growth indexation; life satisfaction; wage inequality; income composition; labor market prospects; education mobility; elderly people; absolute poverty; Labor markets; Aging; Income; Global; Africa; Middle East
Cover IMF Staff Country Reports
France: Selected Issues
International Monetary Fund
This Selected Issues paper for France provides an analytical framework to explain the consequences of the downward shift in the unemployment/wages relationship. This framework is also used to analyze possible changes in the equilibrium unemployment rate resulting from cuts in employers’ social security contributions and movements in the user cost of capital. The contribution of wage moderation to the reduction in the equilibrium unemployment is quantified. The paper also addresses the question of fiscal benefits of job-rich growth in France during 1997–2000.
Keywords:
ISCR; CR; labor market; pair FR-IT; poverty program; unemployment locus; wage moderation; unemployment spending; Inflation; Employment; Neoclassical theory; Wages; Output gap; Global; Europe
Cover IMF Working Papers
Optimal Tariffs: Theory and Practice
Mr. Ali Ibrahim, Mr. Arvind Subramanian, and Mr. Luis A. Torres-Castro
This paper examines the theory underpinning the design of optimal tariffs in a developing economy, and the experience of implementation of tariff reforms. A central issue is whether and when a case can be made for a uniform tariff structure. While theory advocates a differentiated tariff structure (except under a balance of payments objective), political economy considerations, inadequate information, and administrative convenience point to a minimally differentiated tariff structure. The experience of reform indicates that tariff structures are mainly influenced by income distribution and protection objectives. The ability to successfully reduce tariffs depends on measures taken to alleviate fiscal and balance of payments constraints.
Keywords:
WP; tariff structure; tariff reform; tariff level; drawback-type scheme; input tariff increase; tariff rate; duty drawback; consumer goods; tariff reduction; tariff increase; Tariffs; Income distribution; Imports; Real effective exchange rates; Duties; Africa
Cover IMF Working Papers
Policy Reform, Shadow Prices, and Market Prices
International Monetary Fund
How should possible policy reforms and projects be assessed when prices give misleading signals? Revenues and costs at market prices then give distorted measures of social gains and losses and our appraisal should use social opportunity costs, or correctly defined, shadow prices. We show how shadow prices may be integrated into an analysis of tax and price reform, demonstrate the critical dependence of these prices on government policy, and analyze their relations with market prices. A conceptual framework for applied analysis is provided plus a detailed theoretical account of policy in a model with some fixed prices, rationing, and taxation.
Keywords:
WP; discount rate; world price; shadow price system; private sector; producer price; excess supply; marginal social cost; Producer prices; Public sector