Examining the potential impact of universal basic income on labor supply: Focusing on the South Korean models

One of the most contentious facets of universal basic income (UBI) debates revolves around its impact on labor supply. Against this backdrop, this study aims to replicate how labor supply responds to changes in net income caused by the implementation of UBI. Using data from the 15th wave of the National Survey of Taxes and Benefits (N = 9342) and a discrete choice simulation model, this study estimated labor supply outcomes under two specific UBI models. The results suggest that UBI exerts minimal negative effects on labor supply among full-time and part-time workers and appears to encourage labor force entry among unemployed individuals. These findings offer empirical evidence on UBI's effects, suggesting it may support labor participation without substantial disincentives for employment.