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Money for everyoneWhy we need a citizen's income$
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Malcolm Torry

Print publication date: 2013

Print ISBN-13: 9781447311249

Published to University Press Scholarship Online: January 2014

DOI: 10.1332/policypress/9781447311249.001.0001

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date: 17 August 2017

Would People Work?

Would People Work?

Chapter:
(p.149) Chapter 10 Would People Work?
Source:
Money for everyone
Author(s):

Malcolm Torry

Publisher:
Policy Press
DOI:10.1332/policypress/9781447311249.003.0010

This chapter asks whether people would be more or less likely to seek employment if they received a Citizen's Income. Given that it is often the administrative complexity that benefits claimants experience when they take employment or increase their earnings, a simpler system would make it more likely that people would seek and take employment. People are shown to be innately motivated to seek employment, but evidence suggests that they wish to be properly rewarded for their work. ‘Tax credits’ are experienced as wage top-ups for some and not for others, suggesting that some employees are not properly rewarded. A Citizen's Income would be for everybody and so would not have this effect. Labour supply curves inform a discussion of motivation. Means-tested benefits reduce motivation, so coercion by active labour market policies is required. A Citizen's Income would not reduce motivation because they would not contribute to marginal deduction rates and would not disrupt household budgets during labour market transitions

Keywords:   Administrative complexity, Administrative simplicity, Motivation, Wage top-up, Labour supply curve, Subsistence needs, Active labour market policies, Coercion, Labour market transition, Marginal deduction rate

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