Perception of Universal Basic Income and its Perceived Consequences
DOI:
https://doi.org/10.17010/ijf/2024/v18i6/173969Keywords:
universal basic income (UBI)
, poverty, support, perceived consequences, temptation goods, essential goods.JEL Classification Codes
, I31, I38, J68Paper Submission Date
, August 20, 2023, Paper sent back for Revision, March 16, 2024, Paper Acceptance Date, April 10, Paper Published Online, June 15, 2024Abstract
Purpose : The current study focused on understanding the perception of universal basic income (UBI) and its perceived consequences. We investigated this potential alternative program that would address the shortcomings and restrictions of the current welfare system.
Methodology : Five variables were used which addressed a diverse spectrum of dimensions related to the perception of universal basic income. Furthermore, how this perception varies across different demographic groups was examined. A total of 432 respondents from Haryana were included in this study. Statistical techniques like exploratory factor analysis, t-test, one-way ANOVA, and Welch test were used to analyze the data.
Findings : The findings of the study indicated that females and unemployed respondents were more inclined to support UBI and were less skeptical toward its moral consequences as compared to men and employed individuals. Furthermore, people with less income strongly supported the concept, but they were less optimistic about its moral consequences and believed that UBI might encourage people to be lazy and unproductive.
Practical Implications : It was proposed that carrying out a large-scale pilot project can yield relevant information regarding the viability of universal basic income. The government may have a greater knowledge of how UBI could aid in resolving societal challenges, including poverty, unemployment, and inequality, through a thorough evaluation.
Originality : The majority of previous research has been done on European countries. This study is the first to concentrate on how the UBI is viewed in the Indian setting.
Downloads
Published
How to Cite
Issue
Section
References
Achterberg, P., Raven, J., & van der Veen, R. (2013). Individualization: A double-edged sword: Welfare, the experience of social risks and the need for social insurance in the Netherlands. Current Sociology, 61(7), 949–965. https://doi.org/10.1177/0011392113499738
Aker, J. C. (2013). Cash or coupons? Testing the impacts of cash versus vouchers in the democratic republic of Congo. Available at SSRN. https://doi.org/10.2139/ssrn.2241237
Andersson, J. O., & Kangas, O. (2002). Popular support for basic income in Sweden and Finland. In 9th International Congress of the Basic Income European Network (BIEN) (pp. 1–15). https://basicincome.org/bien/pdf/2002AnderssonKangas.pdf
Arcarons, J., Pañella, R. D., & Mèlich, L. T. (2014). Feasibility of financing a basic income. Basic Income Studies, 9(1–2), 79–93. https://doi.org/10.1515/bis-2014-0005
Baker, J. (2008). All things considered, should feminists embrace basic income? Basic Income Studies, 3(3). https://doi.org/10.2202/1932-0183.1129
Banerjee, A. V., & Duflo, E. (2007). The economic lives of the poor. Journal of Economic Perspectives, 21(1), 141–168. https://doi.org/10.1257/jep.21.1.141
Banerjee, A., & Mullainathan, S. (2010). The shape of temptation: Implications for the economic lives of the poor (NBER Working Paper No. 15973). National Bureau of Economic Research. https://doi.org/10.3386/w15973
Banerjee, A., Niehaus, P., & Suri, T. (2019). Universal basic income in the developing world. Annual Review of Economics, 11, 959–983. https://doi.org/10.1146/annurev-economics-080218-030229
Baranowski, M. (2021). The sharing economy: Social welfare in a technologically networked economy. Bulletin of Science, Technology & Society, 41(1), 20–30. https://doi.org/10.1177/02704676211010723
Bazzi, S., Sumarto, S., & Suryahadi, A. (2015). It's all in the timing: Cash transfers and consumption smoothing in a developing country. Journal of Economic Behavior & Organization, 119, 267–288. https://doi.org/10.1016/j.jebo.2015.08.010
Blekesaune, M., & Quadagno, J. (2003). Public attitudes toward welfare state Policies: A comparative analysis of 24 nations. European Sociological Review, 19(5), 415–427. https://doi.org/10.1093/esr/19.5.415
Bordoloi, R. (2014). Formulation and implementation of government policies and programmes with reference to Assam. Arthshastra Indian Journal of Economics & Research, 3(1), 40–47. https://doi.org/10.17010/aijer/2014/v3i1/55963
Browne, J., & Immervoll, H. (2017). Mechanics of replacing benefit systems with a basic income: Comparative results from a microsimulation approach. The Journal of Economic Inequality, 15, 325–344. https://doi.org/10.1007/s10888-017-9366-6
Brune, L., Kerwin, J. T., & Li, Q. (2022). How important is temptation spending? Maybe less than we thought. The World Bank Economic Review, 36(2), 433–454. https://doi.org/10.1093/wber/lhab027
Bruns, S., & Mußhoff, O. (2022). An empirical identification of temptation goods: Perceptions of Cambodian smallholder farmers. Applied Economics, 54(17), 1999–2012. https://doi.org/10.1080/00036846.2021.1983147
Burstein, P. (2003). The impact of public opinion on public policy: A review and an agenda. Political Research Quarterly, 56(1), 29–40. https://doi.org/10.1177/106591290305600103
Choi, G. (2021). Basic human values and attitudes towards a universal basic income in Europe. Basic Income Studies, 16(2), 101–123. https://doi.org/10.1515/bis-2021-0010
Dasso, R., & Fernandez, F. (2014). Temptation goods and conditional cash transfers in Peru (pp. 1–27). International Food and Policy Research Institute. http://www-2.iies.su.se/papers/ASWEDE_C1_Fernandez.pdf
Davala, S., Jhabvala, R., Mehta, S. K., & Standing, G. (2015). Basic income: A transformative policy for India (1st ed.). Bloomsbury Academic. https://doi.org/10.5040/9781472593061
Erikson, R. S. (1976). The relationship between public opinion and state policy: A new look based on some forgotten data. American Journal of Political Science, 20(1), 25–36. https://doi.org/10.2307/2110507
Evans, D. K., & Popova, A. (2017). Cash transfers and temptation goods. Economic Development and Cultural Change, 65(2), 189–221. https://doi.org/10.1086/689575
Gamel, C., Balsan, D., & Vero, J. (2006). The impact of basic income on the propensity to work: Theoretical issues and micro-econometric results. The Journal of Socio-Economics, 35(3), 476–497. https://doi.org/10.1016/j.socec.2005.11.025
Gilbert, R., Murphy, N. A., Stepka, A., Barrett, M., & Worku, D. (2018). Would a basic income guarantee reduce the motivation to work? An analysis of labor responses in 16 trial programs. Basic Income Studies, 13(2), 20180011. https://doi.org/10.1515/bis-2018-0011
Grosh, M., Leite, P., Wai-Poi, M., & Tesliuc, E. (2022). Revisiting targeting in social assistance: A new look at old dilemmas. Human development perspectives. World Bank Publications. http://hdl.handle.net/10986/37228
Haarmann, C., Haarmann, D., Jauch, H., Shindondola-Mote, H., Nattrass, N., van Niekerk, I., & Samson, M. (2024). Making the difference! The Basic Income Grant in Namibia (Namibia Digital Repository). https://www.namibiadigitalrepository.com/items/show/456
Hair Jr., J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128
Hamilton, L., Yorgun, M., & Wright, A. (2022). “People nowadays will take everything they can getâ€: American perceptions of basic income usage. Journal of Policy Practice & Research, 3, 77–95. https://doi.org/10.1007/s42972-021-00035-0
Handa, S., Daidone, S., Peterman, A., Davis, B., Pereira, A., Palermo, T., & Yablonski, J. (2018). Myth-busting? Confronting six common perceptions about unconditional cash transfers as a poverty reduction strategy in Africa. The World Bank Research Observer, 33(2), 259–298. https://doi.org/10.1093/wbro/lky003
Hanna, R., & Olken, B. A. (2018). Universal basic incomes versus targeted transfers: Antipoverty programs in developing countries. Journal of Economic Perspectives, 32(4), 201–226. https://doi.org/10.1257/jep.32.4.201
Hasenfeld, Y., & Rafferty, J. A. (1989). The determinants of public attitudes toward the welfare state. Social Forces, 67(4), 1027–1048. https://doi.org/10.1093/sf/67.4.1027
Haushofer, J., & Shapiro, J. (2013, November 15). Household response to income changes: Evidence from an unconditional cash transfer program in Kenya. https://files.givewell.org/files/DWDA%202009/Interventions/Cash%20Transfers/haushofer_shapiro_uct_2013.11.16.pdf
Haushofer, J., & Shapiro, J. (2016). The short-term impact of unconditional cash transfers to the poor: Experimental evidence from Kenya. The Quarterly Journal of Economics, 131(4), 1973–2042. https://doi.org/10.1093/qje/qjw025
Hill, K. Q., & Hinton-Anderson, A. (1995). Pathways of representation: A causal analysis of public opinion-policy linkages. American Journal of Political Science, 39(4), 924–935. https://doi.org/10.2307/2111663
Huber, J., & Form, W. H. (1973). Income and ideology: An analysis of the American political formula. Free Press.
Jæger, M. M. (2006). What makes people support public responsibility for welfare provision: Self-interest or political ideology?: A longitudinal approach. Acta Sociologica, 49(3), 321–338. https://doi.org/10.1177/0001699306067718
Jumrani, J., & Birthal, P. S. (2017). Does consumption of tobacco and alcohol affect household food security? Evidence from rural India. Food Security, 9, 255–279. https://doi.org/10.1007/s12571-017-0660-8
Katada, K. (2012). Basic income and feminism: In terms of “the gender division of laborâ€. In 14th International Congress of the Basic Income Earth Network (pp. 14–16). https://basicincome.org/bien/pdf/munich2012/katada.pdf
Korpi, W., & Palme, J. (1998). The paradox of redistribution and strategies of equality: Welfare state institutions, inequality, and poverty in the Western countries. American Sociological Review, 63(5), 661–687. https://doi.org/10.2307/2657333
McKay, A. (2001). Rethinking work and income maintenance policy: Promoting gender equality through a citizens' basic income. Feminist Economics, 7(1), 97–118. https://doi.org/10.1080/13545700010022721
Ministry of Finance, Government of India. (2017). Universal basic income: A conversation with and within the Mahatma, Economic Survey 2016–17. https://www.indiabudget.gov.in/budget2017-2018/es2016-17/echapter.pdf
Olken, B. A. (2019). Designing anti-poverty programs in emerging economies in the 21st century: Lessons from Indonesia for the world. Bulletin of Indonesian Economic Studies, 55(3), 319–339. https://doi.org/10.1080/00074918.2019.1690411
Parolin, Z., & Siöland, L. (2020). Support for a universal basic income: A demand–capacity paradox? Journal of European Social Policy, 30(1), 5–19. https://doi.org/10.1177/0958928719886525
Roosma, F., & van Oorschot, W. (2020). Public opinion on basic income: Mapping European support for a radical alternative for welfare provision. Journal of European Social Policy, 30(2), 190–205. https://doi.org/10.1177/0958928719882827
Shah, K. K., & Jani, D. G. (2019). A preliminary survey of the theoretical and practical aspects of UBI and assessing its feasibility in the context of the Indian economy. Arthshastra Indian Journal of Economics & Research, 8(4), 47–55. https://doi.org/10.17010/aijer/2019/v8i4/148071
van Oorschot, W. (1991). Non-take-up of social security benefits in Europe. Journal of European Social Policy, 1(1), 15–30. https://doi.org/10.1177/095892879100100103
van Parijs, P. (2004). Basic income: A simple and powerful idea for the twenty-first century. Politics & Society, 32(1), 7–39. https://doi.org/10.1177/0032329203261095
van Parijs, P., & Vanderborght, Y. (2017). Basic income: A radical proposal for a free society and a sane economy. Harvard University Press. https://www.jstor.org/stable/j.ctv253f7wq
Vlandas, T. (2019). The politics of the basic income guarantee: Analysing individual support in Europe. Basic Income Studies, 14(1), 20180021. https://doi.org/10.1515/bis-2018-0021
Vlandas, T. (2021). The political economy of individual-level support for the basic income in Europe. Journal of European Social Policy, 31(1), 62–77. https://doi.org/10.1177/0958928720923596
White, J. S., & Basu, S. (2016). Does the benefits schedule of cash assistance programs affect the purchase of temptation goods? Evidence from Peru. Journal of Health Economics, 46, 70–89. https://doi.org/10.1016/j.jhealeco.2016.01.005
Yi, G. (2018). The effects of Basic Income on labour supply. Korean Social Security Studies, 34(1), 193–218.
Younder Consulting. (2018). Universal basic income survey. https://yonderconsulting.com/poll/universal-basic-income-survey/
Zelleke, A. (2008). Institutionalizing the universal caretaker through a basic income? Basic Income Studies, 3(3). https://doi.org/10.2202/1932-0183.1133