Rethinking social assistance amid the COVID-19 pandemic: guaranteeing the right to income security in Ecuador

Jara, H. Xavier ORCID: 0000-0001-6648-2653 and Palacio Ludeña, María Gabriela (2024) Rethinking social assistance amid the COVID-19 pandemic: guaranteeing the right to income security in Ecuador. Journal of International Development, 36 (3). pp. 1738-1764. ISSN 0954-1748

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Abstract

In the face of increased uncertainty and a slow economic recovery, it is crucial to protect populations from the effects of systemic crises beyond the narrow goal of poverty reduction. In Ecuador, social assistance programs had little effect in reducing earnings losses caused by the COVID-19 pandemic, leading to a renewed discussion on the implementation of a universal basic income (UBI). This study evaluates the potential impact of social assistance reforms using tax-benefit microsimulation techniques. Four simulated counterfactual reforms are assessed, ranging from an extension of current social assistance programs to the implementation of UBI, which would replace existing programs and be partially funded through progressive personal income tax and social security contributions. Our findings demonstrate that poverty and inequality would decrease significantly under the more generous UBI scenarios. This research contributes to the ongoing debate on the potential benefits of UBI in reducing poverty and inequality and emphasizes the importance of considering alternative social assistance reforms in the face of growing systemic challenges.

Item Type:	Article
Official URL:	https://onlinelibrary.wiley.com/journal/10991328
Additional Information:	© 2024 The Authors
Divisions:	International Inequalities Institute
Subjects:	H Social Sciences > HB Economic Theory R Medicine > RA Public aspects of medicine > RA0421 Public health. Hygiene. Preventive Medicine H Social Sciences > HV Social pathology. Social and public welfare. Criminology
JEL classification:	H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H24 - Personal Income and Other Nonbusiness Taxes and Subsidies H - Public Economics > H5 - National Government Expenditures and Related Policies > H53 - Government Expenditures and Welfare Programs I - Health, Education, and Welfare > I3 - Welfare and Poverty > I38 - Government Policy; Provision and Effects of Welfare Programs
Date Deposited:	20 Dec 2023 12:24
Last Modified:	19 Apr 2024 23:14
URI:	http://eprints.lse.ac.uk/id/eprint/121120

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