TITLE:
Social Protection in a Matching Model: The Case of Basic Income
AUTHORS:
Samir Amine, Pedro Lages Dos Santos
KEYWORDS:
Basic Income; Matching; Social Protection
JOURNAL NAME:
Theoretical Economics Letters,
Vol.2 No.1,
February
23,
2012
ABSTRACT: Faced with increasing poverty and the relative inefficiency of their redistribution systems, many countries are turning to new instruments of social policy. Many economists found there an opportunity to present the mechanism of basic income as the new way forward by the modern social protection. We show that, in a matching model with differentiation agents, the introduction of the basic income has no effect on the balance of the labor market.