IPP Report n°18 - June 2018

Basic income: Experimental simulations

IPP Report n°18 – June 2018

Authors : Mahdi Ben Jelloul, Antoine Bozio, Sophie Cottet, Brice Fabre, Claire Leroy

Contacts : brice.fabre@ipp.eu, claire.leroy@ipp.eu

Summary :

The current system of social benefits is the subject of debate on many fronts: failure to establish minimum social benefits, stacking of multiple schemes, restrictive eligibility conditions for the young, etc. Faced with these challenges, 13 departmental councils (Ardèche, Ariège, Aude, Dordogne, Gers, Gironde, Haute-Garonne, Ille-et-Vilaine, Landes, Lot-et-Garonne, Meurthe-et-Moselle, Nièvre and Seine-Saint-Denis) have launched a project to experiment with the introduction of a basic income that simplifies the existing system and is open to all individuals above a certain age, subject to means testing.

A prerequisite for the implementation of this project is the definition of the reform scenario(s) that are to be tested. This report is in line with this objective, evaluating ex ante the budgetary and redistributive effects of several reform scenarios defined by the departmental councils involved.

Based on the TAXIPP 1.0 microsimulation model, which uses both administrative data from tax sources and survey data, this report has two proposals for simplifying the existing system: the replacement of RSA income support (revenu de solidarité active) and the activity bonus (prime d’activité) by a simplified scheme, and the integration of housing subsidies into the new unified scheme. In particular, the report evaluates the effects of opening up these schemes to individuals aged 18 to 24, who are currently the most affected by poverty.


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