As jobs disappear and wages flatline, paid work is an increasingly fragile basis for dignified life. This predicament, deepened by the COVID-19 pandemic, is sparking urgent debates about alternatives ...such as a universal basic income (UBI). In this incisive new book, Hein Marais casts the debate about a UBI in the wider context of the dispossessing pressures of capitalism and the turmoil of global warming, pandemics and social upheaval. Marais surveys the meaning, history and appeal of a UBI before even-handedly weighing the case for and against it. The book explores the vexing questions a UBI raises about the relationship of paid work to social rights, about prevailing notions of entitlement and dependency, and about the role of the state in contemporary capitalism. Along with cost estimates for different versions of a basic income in South Africa, it discusses financing options and lays out the social, economic and political implications. Highly topical and distinctive in its approach, In the Balance: The Case for a Universal Basic Income in South Africa and Beyond is the most rounded and up-to-date examination yet of the need and prospects for a UBI in a global South setting such as South Africa.
New data derived directly from household surveys are used to examine the effects of globalization on income distribution in poor and rich countries. The article looks at the impact of openness ...(proxied by the ratio of trade to GDP) and of direct foreign investment on relative income shares across the entire income distribution. It finds strong evidence that at low average income levels, the income share of the poor is smaller in countries that are more open to trade. As national income levels rise, the incomes of the poor and the middle class rise relative to the income of the rich. The article explains why using the trade to GDP ratio in purchasing power parity terms, as favored by some analysts, is inappropriate in studies of the effect of trade on income distribution.
What do we mean by inequality comparisons? If the rich just get richer and the poor get poorer, the answer might seem easy. But what if the income distribution changes in a complicated way? Can we ...use mathematical or statistical techniques to simplify the comparison problem in a way that has economic meaning? What does it mean to measure inequality? Is it similar to National Income? Or price index? Is it enough just to work out the Gini coefficient? This book tackles these questions and examines the underlying principles of inequality measurement and its relation to welfare economics, distributional analysis, and information theory. The book covers modern theoretical developments in inequality analysis, as well as showing how the way we think about inequality today has been shaped by classic contributions in economics and related disciplines. Formal results and detailed literature discussion are provided in two appendices. The principal points are illustrated in the main text, using examples from US and UK data, as well as other data sources, and associated web materials provide hands-on learning.
The 2011 World development report looks across disciplines and experiences drawn from around the world to offer some ideas and practical recommendations on how to move beyond conflict and fragility ...and secure development. The key messages are important for all countries-low, middle, and high income-as well as for regional and global institutions: first, institutional legitimacy is the key to stability. When state institutions do not adequately protect citizens, guard against corruption, or provide access to justice; when markets do not provide job opportunities; or when communities have lost social cohesion-the likelihood of violent conflict increases. Second, investing in citizen security, justice, and jobs is essential to reducing violence. But there are major structural gaps in our collective capabilities to support these areas. Third, confronting this challenge effectively means that institutions need to change. International agencies and partners from other countries must adapt procedures so they can respond with agility and speed, a longer-term perspective, and greater staying power. Fourth, need to adopt a layered approach. Some problems can be addressed at the country level, but others need to be addressed at a regional level, such as developing markets that integrate insecure areas and pooling resources for building capacity Fifth, in adopting these approaches, need to be aware that the global landscape is changing. Regional institutions and middle income countries are playing a larger role. This means should pay more attention to south-south and south-north exchanges, and to the recent transition experiences of middle income countries.
This insightful book provides a comprehensive analysis of the nationwide randomised Finnish basic income experiment 2017 to 2018, from planning and implementation through to the end results. It ...presents the background of the social policy system in which the experiment was implemented and details the narratives of the planning process alongside its constraints, as well as a final evaluation of the results.Empirical chapters analyse the outcomes of the experiment in relation to the employment, health and well-being, in various forms, of the recipients of unconditional income transfer. Phenomenological aspects of living on basic income, based on face-to-face interviews, are also reported, as well as media discourse on the experiment and its results. This thought-provoking book concludes with an examination of the political feasibility of basic income in Finland.Offering important lessons on the planning and implementation of such experiments in a developed welfare state, this unique book will be a vital resource for scholars and students of social policy, welfare economics, basic security and basic income.
This paper presents new findings on global inequality dynamics from the World Wealth and Income Database (WID.world), with particular emphasis on the contrast between the trends observed in the ...United States, China, France, and the United Kingdom. We observe rising top income and wealth shares in nearly all countries in recent decades. But the magnitude of the increase varies substantially, thereby suggesting that different country-specific policies and institutions matter considerably. Long-run wealth inequality dynamics appear to be highly unstable. We stress the need for more democratic transparency on income and wealth dynamics and better access to administrative and financial data.
This paper critically surveys the large and growing literature estimating the elasticity of taxable income with respect to marginal tax rates using tax return data. First, we provide a theoretical ...framework showing under what assumptions this elasticity can be used as a sufficient statistic for efficiency and optimal tax analysis. We discuss what other parameters should be estimated when the elasticity is not a sufficient statistic. Second, we discuss conceptually the key issues that arise in the empirical estimation of the elasticity of taxable income using the example of the 1993 top individual income tax rate increase in the United States to illustrate those issues. Third, we provide a critical discussion of selected empirical analyses of the elasticity of taxable income in light of the theoretical and empirical framework we laid out. Finally, we discuss avenues for future research.
Top Indian Incomes, 1922–2000 Banerjee, Abhijit; Piketty, Thomas
The World Bank economic review,
01/2005, Volume:
19, Issue:
1
Journal Article
Peer reviewed
Open access
This article presents data on the evolution of top incomes and wages for 1922-2000 in India using individual tax return data. The data show that the shares of the top 0.01 percent, 0.1 percent, and 1 ...percent in total income shrank substantially from the 1950s to the early to mid-1980s but then rose again, so that today these shares are only slightly below what they were in the 1920s and 1930s. This U-shaped pattern is broadly consistent with the evolution of economic policy in India: From the 1950s to the early to mid-1980s was a period of "socialist" policies in India, whereas the subsequent period, starting with the rise of Rajiv Gandhi, saw a gradual shift toward more probusiness policies. Although the initial share of the top income group was small, the fact that the rich were getting richer had a nontrivial impact on the overall income distribution. Although the impact is not large enough to fully explain the gap observed during the 1990s between average consumption growth shown in National Sample Survey-based data and the national accounts-based data, it is sufficiently large to explain a nonnegligible part of it (20-40 percent).
Top Incomes in the Long Run of History Atkinson, Anthony B.; Piketty, Thomas; Saez, Emmanuel
Journal of economic literature,
03/2011, Volume:
49, Issue:
1
Journal Article
Peer reviewed
Open access
A recent literature has constructed top income shares time series over the long run for more than twenty countries using income tax statistics. Top incomes represent a small share of the population ...but a very significant share of total income and total taxes paid. Hence, aggregate economic growth per capita and Gini inequality indexes are sensitive to excluding or including top incomes. We discuss the estimation methods and issues that arise when constructing top income share series, including income definition and comparability over time and across countries, tax avoidance, and tax evasion. We provide a summary of the key empirical findings. Most countries experience a dramatic drop in top income shares in the first part of the twentieth century in general due to shocks to top capital incomes during the wars and depression shocks. Top income shares do not recover in the immediate postwar decades. However, over the last thirty years, top income shares have increased substantially in English speaking countries and in India and China but not in continental European countries or Japan. This increase is due in part to an unprecedented surge in top wage incomes. As a result, wage income comprises a larger fraction of top incomes than in the past. Finally, we discuss the theoretical and empirical models that have been proposed to account for the facts and the main questions that remain open.
This book investigates the relationship between the character of political regimes in Russia's subnational regions and the structure of earnings and income. Based on extensive data from Russian ...official sources and surveys conducted by the World Bank, the book shows that income inequality is higher in more pluralistic regions. It argues that the relationship between firms and government differs between more democratic and more authoritarian regional regimes. In more democratic regions, business firms and government have more cooperative relations, restraining the power of government over business and encouraging business to invest more, pay more and report more of their wages. Average wages are higher in more democratic regions and poverty is lower, but wage and income inequality are also higher. The book argues that the rising inequality in postcommunist Russia reflects the inability of a weak state to carry out a redistributive social policy.