On the implementation of the Universal Basic Income as a response to technological unemployment

International Journal of Management Research and Economics, Vol. 1, No. 3, pp. 1-6. https://doi.org/10.51483/IJMRE.1.3.2021.1-6

6 Pages Posted: 2 Dec 2020 Last revised: 20 Aug 2021

See all articles by Le Dong Hai Nguyen

Le Dong Hai Nguyen

Georgetown University, Edmund A. Walsh School of Foreign Service; Global Association of Economics Education

Date Written: June 25, 2019

Abstract

The effects of automation on our economy and society are more palpable than ever, with nearly half of jobs at risk of being fully executed by machines over the next decade or two. Policymakers and scholars alike have championed the Universal Basic Income (UBI) as a catch-all solution to this problem. This paper examines the shortcomings of UBI in addressing the automation-led large-scale displacement of labor by analyzing empirical data from previous UBI-comparable experiments and presenting theoretical projections that highlight disappointing impacts of UBI in the improvement of relevant living standards and employability metrics among pensioners. Finally, a recommendation shall be made for the retainment of existing means-tested welfare programs while bolstering funding and R&D for more up-to-date worker training schemes as a more effective solution to technological unemployment.

Keywords: Universal Basic Income, Guaranteed Income, Non-Means-Tested Benefits, Automation, Industry 4.0, Job Displacement, Technological Unemployment, Future of Work

JEL Classification: J08, E61, O38, O10, H53, E24

Suggested Citation

Nguyen, Le Dong Hai, On the implementation of the Universal Basic Income as a response to technological unemployment (June 25, 2019). International Journal of Management Research and Economics, Vol. 1, No. 3, pp. 1-6. https://doi.org/10.51483/IJMRE.1.3.2021.1-6, Available at SSRN: https://ssrn.com/abstract=3714155 or http://dx.doi.org/10.2139/ssrn.3714155

Le Dong Hai Nguyen (Contact Author)

Georgetown University, Edmund A. Walsh School of Foreign Service ( email )

Washington, DC 20057
United States

HOME PAGE: http://hainguyen.georgetown.domains/

Global Association of Economics Education ( email )

Boston, MA 02184
United States

HOME PAGE: http://gaee.org

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