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LUND UNIVERSITY LIBRARIES

Universal Basic Income: Work or Leisure?

Petersen, Greta LU (2024) NEKH03 20242
Department of Economics
Abstract
This thesis explores the potential effects of universal basic income on labor supply and leisure allocation among employed individuals in Sweden. Grounded in the standard neoclassical labor-leisure framework, the study utilized an online survey targeting Swedish workers to investigate whether a monthly universal basic income of 12,208 SEK would reduce working hours and how individuals might reallocate their increased leisure time. The empirical analysis employed a partial proportional odds model to evaluate reductions in labor supply and a multivariate probit model to assess interdependent leisure activity choices. Results indicate that approximately 61 percent of respondents would reduce their working hours, primarily opting for a modest... (More)
This thesis explores the potential effects of universal basic income on labor supply and leisure allocation among employed individuals in Sweden. Grounded in the standard neoclassical labor-leisure framework, the study utilized an online survey targeting Swedish workers to investigate whether a monthly universal basic income of 12,208 SEK would reduce working hours and how individuals might reallocate their increased leisure time. The empirical analysis employed a partial proportional odds model to evaluate reductions in labor supply and a multivariate probit model to assess interdependent leisure activity choices. Results indicate that approximately 61 percent of respondents would reduce their working hours, primarily opting for a modest 25 percent reduction—suggesting that UBI’s impact may be more pronounced on the intensive margin rather than prompting complete labor withdrawal. Results indicate that most respondents would allocate their additional leisure time toward health-related activities, followed by personal interests and family engagement. (Less)
Please use this url to cite or link to this publication:
author
Petersen, Greta LU
supervisor
organization
alternative title
Exploring Universal Basic Income’s Potential Impact on Labor Supply and Leisure Decisions Using a Partial Proportionate Odds Model and a Multivariate Probit Model
course
NEKH03 20242
year
type
M2 - Bachelor Degree
subject
keywords
Universal Basic Income, Basic Income, Labor Supply, Random Utility Maximization, Ordered Choice Model
language
English
id
9183961
date added to LUP
2025-05-16 10:51:33
date last changed
2025-05-16 10:51:33
@misc{9183961,
  abstract     = {{This thesis explores the potential effects of universal basic income on labor supply and leisure allocation among employed individuals in Sweden. Grounded in the standard neoclassical labor-leisure framework, the study utilized an online survey targeting Swedish workers to investigate whether a monthly universal basic income of 12,208 SEK would reduce working hours and how individuals might reallocate their increased leisure time. The empirical analysis employed a partial proportional odds model to evaluate reductions in labor supply and a multivariate probit model to assess interdependent leisure activity choices. Results indicate that approximately 61 percent of respondents would reduce their working hours, primarily opting for a modest 25 percent reduction—suggesting that UBI’s impact may be more pronounced on the intensive margin rather than prompting complete labor withdrawal. Results indicate that most respondents would allocate their additional leisure time toward health-related activities, followed by personal interests and family engagement.}},
  author       = {{Petersen, Greta}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Universal Basic Income: Work or Leisure?}},
  year         = {{2024}},
}