Time & Location

Wednesday 13 September 2023, 11:00 am – 12:00 pm
e61 Institute, Level 3/17-21 Bellevue Street Surry Hills NSW 2010, Australia | Online

About the event

Dr Itay Saporta-Eksten will be presenting the paper, Universal Basic Income: Inspecting the Mechanisms, as part of e61 Institute’s Lounge Series. The presentation will run for approximately 45 minutes followed by a 15 minute Q&A.

Universal Basic Income: Inspecting the Mechanisms
Authors: Nir Jaimovich, Itay Saporta-Eksten, Ofer Setty, Yaniv Yedid-Levi.
Abstract: We consider the aggregate and distributional impact of Universal Basic Income (UBI). We develop a model to study a wide range of UBI programs and financing schemes and to highlight the key mechanisms behind their impact. The most crucial channel is the rise in distortionary taxation (required to fund UBI) on labour force participation. Second in importance is the decline in self-insurance due to the insurance UBI provides, resulting in lower aggregate capital. Third, UBI creates a positive income effect lowering labour force participation. Alternative tax-transfer schemes mitigate the impact on labour force participation and the cost of UBI.

About the presenter

Itay Saporta-Eksten is a tenured Senior Lecturer in Economics at Tel Aviv University, a Research Affiliate at IZA and CEPR, and an associate editor at the Journal of Labour Economics. He received his Ph.D. from Stanford University in 2014. His main fields of study are Labour and Macroeconomics. Itay’s papers have been published in leading journals in economics such as Econometrica, the Journal of Political Economy, and the American Economic Review.