Abstract

When studying the feasibility and justice of basic income, researchers usually assume that policymakers would be introducing the unconditional benefit to a closed economic entity. When contemplating the introduction of a universal policy, few researchers take into consideration the fact that citizens and foreigners migrate, and that this movement alters the size and skill structure of the population. This article addresses this oversight by analyzing how basic income schemes based on residence or citizenship may affect tax base, wages, and employment while incorporating migration incentives. The discussion is based upon neoclassical labor supply and migration theory and informed by the conjectured economic effects from a normative perspective. This research suggests that a basic income would create migration incentives that reduce the tax base, leading us to question this policy’s feasibility. Moreover, the flow-on effects of migration call into question the justice of both residence-based and citizenship-based basic income schemes. Therefore, this article sheds light on how basic income’s feasibility and justice relate to each other and identifies the benefits and further opportunities for interdisciplinary social policy research.