The impact of basic income on labor incentives

© 2018, Universidad Nacional Autonoma de Mexico. All rights reserved. This paper discusses the likely impact of the introduction of a Citizens’ Basic Income on job incentives, in particular for the case of the more precarious and less skilled workers. The article argues that it is reasonable to expect that basic income would not produce a massive retreat from the labor market but, rather, a higher distribution of job. In the specific case of the more precarious and less skilled workers, the article holds that basic income could be a good tool to activate these workers and at the same time avoid poverty and unemployment traps, improve social inclusion, and reduce and polarize the job and social precariousness.