Partial Basic Income in France Could Empower Young People

The introduction of a partial fundamental revenue targeted at young people living in France would give a crucial ‘leg up’ to the nation’s powerless young people, state the new report’s authors.

The analysis from the University of Bath’s Institute for Policy Study (IPR) and Centre for Microsimulation and Policy Analysis (CeMPA) at the University of Essex examines a range of different policy options. Those options are recommended for essential revenue in France and consider trade-offs required in regards to how these would be funded.

The report comes ahead of this weekend’s French Presidential first-round elections, where candidates from the right and left have stated they want to expand access to the minimum earnings benefit (RSA) to those under 25, considered the current qualifying age. However, these propositions would not be global.

This consists of left-wing candidate Jean-Luc Mélenchon, who has recommended basic monthly earnings or ‘freedom grant’ aimed at students in France. His strategies would see all students receive an unconditional monthly allowance of EUR1063.

Reports from Professor Matteo Richiardi

Professor Matteo Richiardi, the IPR report author, argues that a basic income in France is trustworthy. However, it recommends that targeting students specifically could also be regressive, considering that many come from better-off backgrounds and are also to earn more in the future. His report advocates for a more modest allocation (EUR337 a month) for all youths aged 20-24, not just students instead.

Such a move would provide youths a step up into the labor market and towards more independent living. It could also offer a more realistic path to check fundamental income in France, a concept that has been getting traction worldwide over the years.

The influence of this would be dramatic for youths and their families. However, the results would also be sizeable when analyzed throughout the entire populace. The report suggests it could lead to a significant 1.1% decrease in the at-risk-of-poverty rate in France, in general.

Here the most significant net gains would be in the lowest-income households and the most significant net losses in the highest-income houses, implying the policy could also be a practical redistributive measure.

Counting the expenses of basic income

However, policymakers need to weigh up the crucial question of how such systems are paid for. To address this, the new report studies the costs of different systems versus their relative effects on poverty and inequality: from total fundamental income for all adults to more restricted schemes targeting only one group.

On expenses, the report discovers that funding an entire plan would require significant tax-benefit reform, including taxes and modifications to existing benefits. By contrast, a more restricted young people system could be more conveniently achieved, funded through a 3% marginal tax rate increase and no changes to personal tax allowances or existing profits.

The Director of the Centre for Microsimulation and Policy Analysis (CeMPA) at the University of Essex and lead author of the report, Professor Matteo Richiardi, describes that “fundamental revenue is a trustworthy alternative for tax-benefit reform in France; nevertheless, policymakers face challenging compromises. It needs to be large for a basic revenue to safeguard the most vulnerable effectively. However, this, of course, needs substantial tax increment and significant adjusting to the tax-benefit system.”

Mélenchon’s proposal

“A partial basic revenue aimed only at one group may be more practical and politically sellable at this phase. Mélenchon’s proposition for a student’s fundamental revenue goes somehow towards this. However, we believe this would be more effective at a decreased rate and spread among all young people aged 20-24 in France. This would significantly impact their lives, providing support as they reach adulthood and the labor market, but crucially is economically practical and politically achievable.“

Fundamental revenue expert from the University of Bath, Dr. Joe Chrisp, included that “recently, the global fundamental earnings debate has spread in such a way that would have seemed unimaginable ten years earlier. However, that has not always extended to tangible policy reforms. This report paints a clear image of some of the feasible policy alternatives available to policymakers interested in providing a fundamental revenue in France.“

“While many nations have carried out targeted experiments with fundamental revenue, the report’s proposition of basic revenue for youths indicates another amazing reform. This last could examine the results of a fundamental income-proper and address more instant issues with access to social security among younger people.”

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