Gerlinde Verbist

Proponents of a basic income (BI) claim that, on top of many other benefits, it could bring significant reductions in financial poverty. Using microsimulation analysis in a comparative two-country setting, we show that the potential poverty-reducing impact of BI strongly depends on exactly how and where it is implemented. Implementing a BI requires far more choices than advocates seem to realise. The level at which a BI is set matters, but its exact specification matters even more. The impact of a BI, be it a low or a high one, also strongly depends on the characteristics of the system that it is (partially) replacing or complementing, as well as the socio-economic context in which it is introduced. Some versions of BI could potentially help to reduce poverty but always at a significant cost and with substantial sections of the population incurring significant losses, which matters for political feasibility. A partial BI complementing existing provisions appears to make more potential sense than a full BI replacing them. The simplicity of BI, however, tends to be vastly overstated.

To mitigate global climate change, drastic transformations of the energy system are needed. Whereas the public is asked to adapt its energy demand patterns, their perspective is often neglected. In this study, we incorporated a more human-centered dimension into energy research by examining how social characteristics determine the composition of individuals’ preferred energy mix. Previous studies have been mainly limited to the exploration of preferences for one energy system in isolation. Hence, little is known about how various energy sources are combined into various energy mixes. Furthermore, empirical research regarding the heterogeneity of energy preferences often lacks an intersectional approach. Against this background, we used Belgian data from the European Social Survey (N = 1766) to examine the diversity of preferred energy mixes among individuals and how this relates to social characteristics. Specifically, a segmentation analysis was conducted to cluster Belgian respondents into intersectional, meaningful groups related to their preferred energy mixes. The results of the segmentation analysis underpin the existence of vulnerable and privileged groups in the establishment of a green transition. This study highlights the importance of focusing on energy mixes from an intersectional stance, as it provides an excellent tool to uncover the power dynamics underlying an energy transition.

This chapter discusses the major steps and issues related to the inclusion of public services in inequality research. Empirically, it investigates how the income distribution in countries changes when the value of publicly provided services to households is included. The authors consider five major categories of public services: education, health care, social housing, childcare and elderly care. On average across OECD countries, spending on these ‘in-kind’ benefits accounts for about 13% of GDP, slightly more than the spending on cash transfers – but with considerable cross-country variation. Broadening the income concept to account for in-kind benefits considerably increases households’ economic resources. But public services also contribute to reducing income inequality, by between one-fifth and one-third depending on the inequality measure. This chapter suggests that publicly provided services fulfil an important direct redistributive role in OECD countries.

Expanding childcare is often considered as a suitable way to enhance employment opportunities for mothers with young children as well as to reduce child poverty. In this study, the authors critically investigate this assertion by simulating a set of scenarios of increasing subsidized childcare slots and mothers’ employment. For a variety of European welfare states, the impact on poverty and on the government’s budget is estimated using the European microsimulation model EUROMOD. The findings suggest that to achieve significant poverty reductions among young children, both additional childcare slots and increased mothers’ employment should be well targeted. The expenditures for additional childcare slots can to a large extent be recovered by the government receipts generated by the additional employment; however, there appears to be a trade-off between the extra revenue that can be generated and the extent of poverty reduction.