Critical analysis of unconditional basic income and its effect on labor market and tax revenues

Bc. Yi Yang

Master's thesis

Abstract:

The aim of the author's thesis is to investigate the positive and negative consequences of the implementation of Unconditional Basic Income (UBI) in selected economic scenarios, as well as to find out which factors affect the labour market and tax revenues in the region in the context of UBI. The economic scenario chosen for this thesis is Macau, China, and it is studied in relation to a similar unconditional basic income policy - wealth partaking scheme (WPS). The author developed two linear regression models for the labour market and tax revenues, respectively, where the labour force participation rate and the tax revenues of the Macao government were used as the dependent variables of the two regression equations, respectively, and the Macao Statistical Bureau and the Wealth Partaking Scheme of the Government of the Macao Special Administrative Region provided data for the study, for the period from 2008 to 2022. Based on the data analysis, the number of WPS beneficiaries (cheque cashing), the total amount of WPS (cheque cashing) and the number of students in tertiary education affect the labour force participation rate in a small and positive way; however, tax revenues are rarely affected by the number of WPS beneficiaries (cheque cashing) and private final consumption expenditures.

Keywords

unconditional basic income, taxation, expenditures, social system

Language used: English

Date on which the thesis was submitted / produced: 4. 4. 2024

Thesis defence

• Date of defence: 30. 5. 2024
• Supervisor: Ing. Lukáš Moravec, Ph.D.
• Reader: Viktor Janáček, Ing., externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Economics and Management