Guaranteed job or guaranteed income? | From Poverty to Power - 0 views
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Simon Knight on 17 May 18Interesting discussion of a contentious issue related to the idea of a 'basic income' (but here, in a development context). Martin Ravallion (former Chief Economist of the World Bank, now at CGD) published a useful paper this week asking exactly this question. As he says, there's no simple answer - which is why the question is so interesting. Both 'the right to work' and 'the right to income' aim to secure a more fundamental right: freedom from poverty. Workfare has a long history, notably in India, where the National Rural Employment Guarantee Act (NREGA) guarantees (in theory) up to 100 days work per year, paid at a minimum wage, to anyone who requests it. Cash transfers (often with conditions) have expanded enormously in recent years, while the hot topic of Universal Basic Income (UBI) has advocates across the political spectrum. Which of these approaches is most cost-effective? Ravallion sets out the arguments clearly.