FRIBIS-Discussion-Paper: How is the declining share related to technological change – and what does this mean for the feasibility of a UBI?

As part of the FRIBIS Discussion Papers series, a new paper by Joe Chrisp, Aida Garcia-Lazaro, Nick Pearce has just been published:

Technological chance and growth regimes – Assessing the case for universal basic income in an era declining labour shares.

The starting point of their study is the diagnosis that there has been a substantial decline in labor force participation rates and a rise in inequality in most OECD countries in recent decades. They argue that the decline in labor share and the rise in inequality pose various problems for these countries, whether in terms of distributive justice, economic and social outcomes, such as insufficient aggregate income and demand, or democratic politics.

What role does technological change play in this development – and does this change speak for or against the feasibility of an Unconditional Basic Income? These and other questions are addressed in the paper.

Joe Chrisp: Research Associate, Institute for Policy Research (IPR), University of Bath

Aida Garcia-Lazaro: Research Associate, Institute for Policy Research (IPR), University of Bath, FRIBIS Team Microsimulation

Nick Pearce: Director, Institute for Policy Research (IPR), University of Bath, FRIBIS Team Microsimulation