Wicked Problems in the Information Age: Decentralizing for Equality
Eve Guterman, BMI Fellow
Academic Advisor: Professor Itai Sened
The current research focus is on gathering data to support the following hypothesis: A Distributed Ledger Technologies (DLTs) intervention that breaks monopolies on capital formation will mitigate the redistribution problem, resulting in increased individual purchasing power and increased social welfare. Such data, which is acquired with the help of GoodDollar, the first of its kind Universal Basic Income initiative based on DLTs. The acquired data leads to a conclusion that Latin America and Argentina in particular is an early adopter of the initiative. The data, which is in progress of being extracted - falls into two categories. The first being a systematic categorization of the services offered and requested in the groups, namely, reviewing and sorting the types of transactions and goods/services that have evolved organically around the existence of GoodDollar as a new store of value and means of exchange, including their associated “market value” on the informal GoodDollar marketplace. The second is that the relevance of the aforementioned hypothesis should be assessed through a qualitative survey, which is currently in the works.
Outside employment opportunities
Elad Guttman, BMI Fellow
Dr. Oren Danieli, School of Economics, TAU
Elad is a part of Dr. Oren Daneli’s research group, who is currently working on three research projects: The first one deals with a concept known as outside options index (OOI), which essentially is the options available to workers in a labor market. Analyzing German data, the findings make a significant contribution linking the difference in OOI and the gender wage gap (see attached figure). The second research revisits the US wage inequality model through using skill-replacing routine-biased-technological-change (SR-RBTC), with technology replacing the usage of skill in routine tasks. The third project introduces a data driven way to design the optimal policy experiment for increasing chances of escaping poverty. Analysis is conducted through the data that was collected in three US cities from poverty-stricken individuals. The findings suggest that income-increasing interventions for the poor need to be broader than simply human capital or place-based policies.
Budgeting for a Universal Basic Income in Israel
Stav Cohen, BMI Fellow
Academic Advisor: Prof. Itai Sened
Universal Basic Income (UBI) is a policy, which focuses on reducing economic inequality that has been on the rise globally. From a theoretical standpoint, UBI would decrease the Gini coefficient, allowing for a more egalitarian society. The purpose of this study is to analyze opportunities for UBI distribution in Israel, while considering various sources for budgeting the policy, some in a form previously overlooked by scholars. This project will examine existing funding methods by analyzing the governmental budget articles that can be repurposed to fund UBI. Such articles will include those that have been prone to overfunding without significant improvements in services they provide and those that will no longer be useful if UBI is adopted.
The Boris Mints Institute Inequality Lab looks into the institutional, political and economic dimensions of inequality and studies the social mobility and prospects of different social groups.