ICOAEF IV. International Conference on Applied Economics and Finance & Extended with Social Sciences, Aydın, Turkey, 28 November 2018
Rising unemployment and poverty due to globalization, structural changes in the economy, automation, and other reasons revealed the shortcomings of the welfare state and its social security systems. In search of justice in income distribution and easy access to basic necessities by everyone, basic income has become one of the main topics of conversation again. The basic income is an idea about redistribution of economic outcome that finds its roots over 150 years ago. It has already been implemented in some countries with different coverage and gained supporters and critics from different ideologies. By taking these current issues into consideration, this study aims to set a theoretical framework of the basic income, compare different ideologies on the topic, evaluate several examples of implementations from the world, and finally analyze the feasibility of a basic income program in Turkey. Analysis starts with the calculation of the level of basic income that will replace existing social benefits. Then, under the budget balance constraint, the study introduces two scenarios that set the amount of basic income at the poverty line and minimum income. After calculating total cost of these scenarios and determine the required increase in tax revenue, analysis continues with the income distributional consequences of these policies considering changes in the Gini coefficient and Theil index.