Template-Type: ReDIF-Article 1.0
Author-Name: Jesús Artero López
Author-Name: Rosario Gómez-Álvarez Díaz
Author-Name: David Patiño Rodríguez
Title:  El impacto redistributivo de un sistema de renta básica universal en Andalucía
Abstract: Resumen:La implementación de una renta básica universal ha cobrado relevancia en los debates económicos y políticos, debido a la crisis, el crecimiento de la desigualdad y los cambios tecnológicos. Este trabajo muestra la viabilidad financiera de la implementación de una renta básica universal, 7.500 euros para la población mayor de 18 años y 1.500 para los menores, en Andalucía para el 2010. Se cuantifica la reducción de desigualdad en la Andalucía, y la existencia de una mayoría de ganadores frente a los perdedores, estando estos últimos situados en las decilas superiores de la distribución de la renta.Abstract:Nowadays, multiple debates exist in academic area and public opinion about the advantages and disadvantages of the implementation of a universal basic income (UBI). This is an unconditional, nonwithdrawable income for every individual as a right of citizenship, and obligation-free (Parijs and Vanderborght, 2005). UBI can be received with other public benefits in kind (education, health, etc.)  or  in-cash, and therefore does not predict the Welfare State reduction. In addition, the right is strictly applied to the individual and the extension of the right to the family unit is not possible. Finally, its enjoyment does not imply any type of work or other compensation.
Philosophical, political and economic justifications of UBI are of various kinds, although we can indicate three of them. It is a tool to reduce poverty and income inequality (Atkinson, 1993, Smith, 2014).  Likewise, individuals are only free to be able to self-govern their private life and participate in public life when they possess the material means that allow them not to depend on others to live, being RBU a public policy that guarantees this fundamental right (Domènech and Bertomeu, 2005 Petit, 2013, Van Parijs and Vanderborght, 2005). Finally, UBI could compensate the initial unequal starting situation of individuals in society; that is, it serves to reduce inequality in the initial endowment of assets and resources obtained without there being a clear reciprocity in terms of productive activity previously carried out (Birnbaum, 2016). In this way, it is implemented as a mechanism to create equal opportunities (Rawls, 1971, Dworking, 1985, Roemer, 1998).
But this purpose is not new, the first academic argument arises in the work of Paine in 1797, and he called citizen income (Cunliffe and Erreygers, 2004), which is reformulated by economists of great prestige on the XX century (Meade, 1938, Friedman, 1962, Tobin, Pechman and Mieszkowski, 1967). Later, Van der Veen and Van Parijs (1986), reopen the debate on their applicability in a context with high unemployment, being precursors of economic viability research for different territories: Europe (Callan and Sutherland, 1997), national contexts (Atkinson, 1995, Torry, 2015, Colombino et al., 2010) or local communities (Boffey, 2015).
Already in the 21st century, the UBI has taken on greater relevance due to its translation into the political discussion, including the international arena (OECD, 2017). This interest has been propitiated by several events: the growth of inequality worldwide, which has also affected Spain and Andalusia (Piketty, 2014, Stiglitz, 2015, Milanovic, 2011, Ayala, 2016), technological advances and their effects on employment (Atkinson, 2015, World Economic Forum, 2016) and the evaluations of its real implementation in different contexts. These empirical estudies are showed it capacity to reduce inequality without generating disincentives to work as in the case of: Alaska (Goldsmith, 2010); Namibia (Haarmann and Haarmann, 2015); California (Altman, 2016) Utrech or Maastrich (BIEN, 2015), among others.
Several studies about UBI viability and its impact on inequality for Spain have been carried out (Arcarons, Raventós and Torrens, 2014b, Oliver and Spadaro, 2004) as well as for the Basque Country and Catalonia (Arcarons et al., 2014a, 2005). In addition, different legislative initiatives have been promoted at the regional and state levels to support measures of this type (Martínez, 2008), although they have not prospered.
In our work, we draw the economic viability of the UBI in Andalusia, an autonomous region of Spain. The funding proposal is based on replacing redundant economic benefits and an income tax reform in 2010. This year is significant because correspond al period of  economic crisis, and there is not extra fiscal revenues from cicle economic. 
The first step affect the monetary assistance benefits. All of them are means-tested transfers, whose individual amount is not higher than UBI disappear and their total budget allocation is used to finance the reform. There are two benefits that exceed the amount of RBU granted to each individual, such as contributory pensions and unemployment benefits. In those cases, individuals continue to receive the amount that exceeds the UBI. 
The second step is a IRPF reform. All deductions are eliminated, the existence of an exempt minimum equal to the amount of the UBI and  application of a linear rate of 49.5%. We model a micro-simulation using a sample of individual respondents and non-respondents settlements of income tax from Institute of Fiscal Studies for 2010; as well as the information provided by different public administrations on the amounts of means-tested transfers.
Our results show the reform makes affordable the financial viability of UBI in Andalusia. We evaluate two schemes for a population of 8,370,975 habitants in Andalusia in 2010.  In the first, all residents receive 7.500 euros per month and the total budget is 62.782,31 millions of euros. In the second, children under 18 years old recieve 1.500 euros per month and the budget is 52.884,22 millons of euros. The first scheme generates a deficit estimated at 8,377.6 millions of euros. Conversely, the second scheme creates a surplus equal to 1,520.63 millions of euros. This surplus could allow to reduce the marginal tax or to increase the UBI, for  example. 
Regarding their redistributive impacts are remarkable. The first scheme results show that the population among the first and the seventh deciles are winners, and three last deciles are losers. In the second scheme the winners are all population of two first deciles, more than 50% population among the third and the seventh deciles, and less than 50% for the rest of deciles.
Effective tax rates are not quite different in both schemes.  The effective tax rates in the first scheme  are negative until fourth decile,  are minor until sixth decile, and tenth decile put up 34,52% effective tax.
The indicators of inequality, concentration and progressivity show a large redistributive impact of the reform. When comparing the situation before and after the reform (gross income ex ante vs. net income ex post plus RBU), the Gini Index decreases by 23 percentage points in scheme one, and 19 percentage points in scheme two. This result is underestimating the total redistributive impact of the measure, since the population outside the microsimulation is not included in the analysis, as it is exempt from the current IRPF, which is a great beneficiary of the reform.
The study provides solid evidence of financial viability of the hypothetical implementation in Andalusia of taxtransfer reforms embodying some version of a basic income policy. The reform shows great effectiveness as a measure to reduce inequality. However, the subsequent economic implications  (impact on the labor market, poverty, etc.), social (criterion of justice, principle of reciprocity) or politic (conflict and pressure from interest groups) confirm the need of complementary studies, in order to be raised in the political agenda.
In addition, RBU could serve as an instrument to obtain information about certain individuals and groups, that due to their personal or group characteristics, do not access the current subsidy system: lack of information, misunderstanding of adminstrative procedures,  and other types of barriers they limit their request. Together, better social inclusion results would be obtained.
Finally, the digital age is generating great economic and social changes. In this context, a RBU could play a decisive role, as an instrument of correction of technological unemployment, avoiding the increase of inequality and increasing equal opportunities. The  fiscal viability calculation of RBU facilitates the way to further debates that provide useful information to design the political agenda.
Classification-JEL: R1
Keywords: Renta Básica Universal, Viabilidad Financiera, Microsimulación, Imposición Directa, Efecto Redistributivo, Andalucía., Universal Basic Income, Financial Viability, Micro-Simulation, Direct Taxation, Redistributive Effect, Andalusia.
Pages: 129-164
Volume: 1
Year: 2021
File-URL: http://www.revistaestudiosregionales.com/documentos/articulos/pdf-articulo-2608.pdf
File-Format: Application/pdf
Handle: RePEc:rer:articu:v:1:y:2021:p:129-164