The Basic Income proposed by Althaus: Effects in Labor Supply, Distribution and Budget

The Basic Income proposed by Althaus: Effects in Labor Supply, Distribution and Budget

The Basic Income promoted by Dieter Althaus (prime minister of the federal state Thüringen) combines several proposals for reforms of the german tax and transfer system. Elements of this Basic Income are: e.g. Negative income taxaxtion, a flat tax system, financed rents and the abolishment of unemployment benefits. The original proposal and variants of it are simulated and the effects on labor supply, income distribution and the government´s budget are estimated. 

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Reinhold Schnabel

Reinhold Schnabel

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Research Associate
Reinhold Schnabel
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Stefanie Schubert
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