Social Protection in a Matching Model: The Case of Basic Income


Faced with increasing poverty and the relative inefficiency of their redistribution systems, many countries are turning to new instruments of social policy. Many economists found there an opportunity to present the mechanism of basic income as the new way forward by the modern social protection. We show that, in a matching model with differentiation agents, the introduction of the basic income has no effect on the balance of the labor market.

Share and Cite:

Amine, S. and Santos, P. (2012) Social Protection in a Matching Model: The Case of Basic Income. Theoretical Economics Letters, 2, 26-30. doi: 10.4236/tel.2012.21005.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] C. Pissarides, “Why Do Firms Offer ‘Employment Protection’?” Economica, Vol. 77, No. 308, 2010, pp. 613- 636. doi:10.1111/j.1468-0335.2010.00861.x
[2] A. B. Atkinson, “Public Economics in Action: The Basic Income Flat Tax Proposal,” Clarendon Press, Oxford, 1995.
[3] J. M. Ferry, “L’Allocation Universelle. Pour un Revenu de Citoyenneté,” Cerf, Paris, 1995.
[4] C. Pissarides, “Equilibrium Unemployment Theory,” MIT Press, Cambridge, 2007.
[5] A. Chéron, “Allocation Universelle vs. Indemnités Ch?mage: Une Evaluation Quantitative dans un Modèle D'appariement,” Revue Economique, Vol. 53, No. 5, 2002, pp. 951-964.
[6] S. Salop, “Monopolistic Competition with Outside Goods,” Bell Journal of Economics, 1976.
[7] B. Petrongolo and C. Pissarides, “Looking into the Black Box: A survey of the Matching Function,” Journal of Economic Literature, Vol. 39, No. 2, 2001, pp. 390-431. doi:10.1257/jel.39.2.390
[8] J. Albrecht, P. Gautier and S. Vroman, “Matching with Multiple Applications,” Economics Letters, Vol. 78, No. 1, 2003, pp. 67-70. doi:10.1016/S0165-1765(02)00178-7
[9] S. Amine and P. Lages Dos Santos, “Technological Choices and Unemployment Benefits in a Matching Model with Heterogenous Workers,” Journal of Economics, Vol. 101, No. 1, 2010, pp. 1-19. doi:10.1007/s00712-010-0133-4
[10] S. Amine and P. Lages Dos Santos, “The Influence of Labour Market Institutions on Job Complexity,” Research in Economics, Vol. 65, No. 3, 2011, pp. 209-220. doi:10.1016/j.rie.2010.10.001

Copyright © 2024 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.