An Investigation of the Impacts of a Universal Basic Income (UBI) On Poverty and Income Inequality in the United States: A Cross-Section Analysis

A. Des Adom

doi:10.56201/ijefm.v11.no4.2026.pg44.56

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An Investigation of the Impacts of a Universal Basic Income (UBI) On Poverty and Income Inequality in the United States: A Cross-Section Analysis

A. Des Adom

Abstract

Implementing a universal basic income in the United States has become the last frontier of economic experiment in the nation's ceaseless quest for effectual solutions to address lingering issues of poverty and income inequality, or income disparity. In that regard, this study endeavors to understand the impacts of a UBI initiative on poverty and income inequality in the US. The empirical analysis utilizes a simultaneous equation model within a two-legged cross-sectional methodology framework over the 2022-2023 and 2023 periods for 50 states and Washington, D.C., as data permit. Moreover, it considers the temporary assistance for needy families program as a proxy for UBI. Results with UBI are complex. A UBI, through financial direct assistance, is inconsequential in altering the level of poverty. Moreover, it worsens income disparities. However, social mobility is found to provide a viable path to explore because it indirectly lessens poverty through the channel of income disparity, which it directly reduces. JEL Classification: I32, I39, C31.

References

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An Investigation of the Impacts of a Universal Basic Income (UBI) On Poverty and Income Inequality in the United States: A Cross-Section Analysis

Abstract

References

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