Abolishing poverty in the Basque Country: two feasible basic income models

Abstract

Basic income has garnered a great deal of attention in recent years. This surge in interest stems from growing income disparities, the failures of existing minimum income programmes, shifts in labour market dynamics and numerous global basic income pilot initiatives. Yet realising the successful implementation of a basic income requires a sustained and comprehensive effort. This research contributes to this imperative by presenting an unprecedented microsimulation analysis of the economic viability of introducing a basic income in the Basque Country. The study introduces two economically sustainable and coherent basic income models that not only effectively eliminate poverty but also generate redistributive effects. These outcomes would position the Basque Country as a region with lower income inequality than any European Union (EU) member state. This article underscores the transformative potential of basic income in the Basque Country and offers valuable insights for policy makers contemplating similar initiatives in other regions or nations.