00:01
What is usually meant by universal basic income? universal basic income is a social welfare proposition in which all citizens of a given population will regularly receive guaranteed income.
01:00
This is independent of other income.
01:15
So what would be the effects on the labor supply? it can raise the wages of those who choose to work.
01:40
So we have wage or price of labor versus quantity of labor.
02:07
We have our demand curve and our supply curve for labor.
02:15
So offering money to people who could work raises the reservation wage.
02:45
As the reservation wage increases, the labor supply curve is going to shift to the left.
02:54
So you see we have a shift here in the supply curve.
02:57
The demand curve does not shift.
03:00
Then we have a new equilibrium wage in the market for labor.
03:06
So initially this was our equilibrium wage and equilibrium quantity.
03:11
Then you can see that our equilibrium wage has increased and equilibrium quantity has also shifted.
03:21
So offering money to people to work or not raises the wages of people who do work...