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Universal Basic Income already is a targeted system
4 Dec 2023
A common response to our work on Universal Basic Income as an anti-poverty policy is the following: ‘Well, that’s going to cost a lot of money. Rather than giving money to everyone, including lots of people who don’t need it, it would be better to target all that money on the poorest people, who really need it. You will have create a bigger anti-poverty effect that way’. There is a version of this argument here, for example. Though this argument seems intuitively right, it’s actually not, oddly. UBI schemes of the kind we have advocated are in fact both universal (everyone gets them) and really well targeted at the poor. In fact, UBI schemes can be designed to have any precision and profile of social targeting that a policy-designer could imagine. In this post, I try to explain why. The important thing to bear in mind is that the fiscal interaction between the state and the citizens is a two-way thing: there are both taxes (citizen to state) and transfers (state to citizen). When assessing how targeted a system is, you have to consider both of these: what is the net effect of the taxes and transfers on the income … Continue reading “Universal Basic Income already is a targeted system”
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The threshold project: Recruiting post-docs
20 Nov 2023
I am recruiting two post-docs to join us (in the Evolution and Social Cognition team, based in the Institut Jean Nicod, in the garden of the Ecole Normale Supérieure, here in Paris) for a new project called THRESHOLD. The advert is here. The deadline for applications is 11 December 2024. This blog post gives some more information about the projet. Theories of human economic decision making are based on a simple model called a value function, or utility function; a mapping between the amount of money people have (or will receive), and their valuation of the situation. The typical function assumed is the dotted line in figure 1: the function is smooth; people like having more money better than less; but the amount of extra value they get with each additional euro is less than the last (aka diminishing returns). This means that people should always be risk-averse, since dropping down from where you currently are is always worse than going up by an equivalent number of euros. In recent work, we’ve been considering the consequences of entertaining an alternative model, where the value function is more jagged: more like a cliff-edge than Pareto’s smooth hills of pleasure. For example, … Continue reading “The threshold project: Recruiting post-docs”
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It probably is that bad
9 Nov 2023
The discipline of psychology is wringing its hands about its failure to make enough substantial and dependable scientific progress over the last fifty years of effort. First, we blamed our methods: hypothesizing after the results were known, researcher degrees of freedom, p-hacking and the rest. Then, we went after the theories: theories in psychology were so arbitrary, so vague in their relation to anything we could measure, so foundation-less, and so ambiguous, that tests of them were both much too easy, and much too hard. They were much too easy in that they could always be deemed a success. They were much too hard, in that the tests did not generally lead to substantive, cumulative, coherent knowledge. Reforms to the theory-building process were urged (here, here, here). Actually, these critiques were not new: Paul Meehl had made them floridly decades earlier. Writing in the last century, but in a parlance that would have been more at home in the century before, he compared the psychology researcher to: “a potent-but-sterile intellectual rake, who leaves in his merry path a long train of ravished maidens but no viable scientific offspring.” I read all this with interest, but I remember thinking: “it can’t … Continue reading “It probably is that bad”
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Phoebe and the paradox of tragedy
23 Oct 2023
All summer long, our little cat Phoebe spent much of her time squeezed onto the kitchen window bar, gazing out into the garden. How sweet, I thought, she is looking out on the sunshine and flowers. Coming home and encountering her yet again in position, we would say ‘she must really like sitting there’. Weeks went by and it began to unsettle me. This is starting to seem obsessive; she has become like Edward in Harold Pinter’s A Slight Ache, staring up the lane from the scullery to see if the silent match-seller is in sight. Finding her unresponsive, curled up in her bed when I came down to make the morning tea gradually went from being charming to worrying. Has she worn herself out with her vigil? What if looking out all day and night is actually a horrific and exhausting chore? What if it is making her ill? Eventually, in an insomniac moment, I could not stop myself descending at 3am, to discover the silhouette of Phoebe by moonlight, at her post, peering fixedly into the gloom. We took her to the country for a couple of weeks. My anguish heightened a notch when, on returning and … Continue reading “Phoebe and the paradox of tragedy”
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Does greater inequality cause worse health? No! And: kind of yes!
9 Oct 2023
The question of whether greater economic inequality makes people’s health and wellbeing worse is an important one. The literature has been moving fast over recent years, and the debate has moved on somewhat since my previous essay. It can all get a bit technical and econometric at times. The questions most people care about are: (1) is the relationship between inequality and health really a cause and effect one?; and: (2) if we make our country more equal, for example by increasing benefits or cutting taxes on the rich, will we improve health? Somewhat paradoxically, I am going to answer (from my current understanding of the literature): ‘kind of no’ to the first question; and ‘yes’ to the second. First, let’s look at the very brief history. Act One: In which a slew of papers appears, showing that countries, or US states, with greater inequality in incomes had lower life expectancy, worse health and mental wellbeing, and a host of other poor outcomes like lower trust and higher crime, when compared to countries or states with lower inequality. Inequality here was measured as the dispersion of the distribution of incomes, typically captured by the Gini coefficient; and many of these … Continue reading “Does greater inequality cause worse health? No! And: kind of yes!”
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What do people want from a welfare system?
21 Sep 2023
All industrialised societies feature some kind of welfare system: institutions of the state that transfer material resources to certain categories of people or people who find themselves in certain kinds of situation. Non-industrialised societies have systems of social transfers too, albeit sometimes more informal and not organised by the state. People seem to think this is a good thing, or at least necessary. This raises the question: what do the public think a good welfare system would be like? How generous do they want it to be, and how would they like it to distribute its resources? Polls in European nations consistently find most people expressing strong support for the welfare state. But there is a problem with this: when asked, a lot of people express support for tax cuts too. And for lots of other things, things that probably can’t all be achieved at the same time. This has led to one view in political science that most people’s policy preferences are basically incoherent (and hence, not much use in setting public policy). There is another interpretation, however. Imagine you ask me whether I would like more generous benefits for people with disabilities, and I say yes; and you … Continue reading “What do people want from a welfare system?”
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How can I explain this to you?
11 Sep 2023
One of the big problems of the social and human sciences is the number of different kinds of explanations there are for what people do. We invoke a great range of things when we talk about why people do what they do: rational choice, conscious or unconscious motivations, meanings, norms, culture, values, social roles, social pressure, structural disadvantage…not to mention brains, hormones, genes, and evolution. Are these like the fundamental forces in physics? Or can some of them be unified with some of the others? Why are there so many? It is not even clear what the exhaustive list is; which elements on it could or should be rephrased in terms of the others; which ones we can eliminate, and which ones we really need. It’s bad enough for those of us who do this for a living. What do the general public make of these different constructs? Which ones sound interchangeable to them and which seem importantly different? The explanation-types are sometimes grouped into some higher-order categories, such as biological vs. social. But how many of these higher groupings should there be, and what should be their membership? In a recent paper, Karthik Panchanathan, Willem Frankenhuis and I how … Continue reading “How can I explain this to you?”
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Treating causes, not symptoms
14 Jul 2023
Yesterday saw the launch of our report ‘Treating causes not symptoms: Basic Income as a public health measure’. The report presents the highlights of a recently-ended research project funded by the National Institute for Health and Social Care Research. This has been an interdisciplinary endeavour, involving policy and political science folk, health economists, behavioural scientists, community organizations, and two think tanks. The public has Manichean intuitions about health. On the one hand, people feel very strongly that an affluent society should compensate and protect its members against the spectre of ill health. This is particularly true in the UK with its strong tradition of socialized care. They will support spending large amounts of money to make good health inequalities. But when you suggest that the best way for society to make good health inequalities is by removing the poverty that lies upstream of them, people often baulk. You can’t do that, surely? I think there are a few reasons for this reaction. One is that different lay models of causation govern the two domains. Ill health seems to be all about luck, the kind of luck society should insure us against. No one sets out to get ill. Poverty seems, … Continue reading “Treating causes, not symptoms”
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On poverty and addiction
4 Jul 2023
Reading descriptions of the lives of people living in adverse economic conditions, something that will strike you over and over again is how often addiction comes up: to alcohol, to tobacco, to other drugs, or to behaviours such as gambling. There is addiction in all strata of society, but, from the novels of Zola to today, it seems specially prevalent where people have the least access to money and power. Is this really true, and, if so, how could we possibly explain it? Epidemiological evidence confirms that it is really true. In the USA, the prevalence of smoking is about twice as high amongst those in routine/semi-routine occupations compared to managers and professionals. Smokers of all classes try to quit; managers and professionals are more likely to succeed. Addictive substances often show double dissociations with class: people with more money can afford to consume more of the substance, since they have more money; but people with less money are more likely to end up consuming to the point where it causes them life problems. So, for example, higher-SES young people in France consume more cannabis overall; but lower-SES young people are more likely to be frequent users. The double dissociation … Continue reading “On poverty and addiction”
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Innateness is for animals
21 Jun 2023
Innate or acquired? Genes or culture? Nature or nurture? Biological or psychological? People are inveterately fond of trying to divide human capacities into two sorts. Commentators often seem to think that determining which capacity goes in which box is the main preoccupation of the evolutionary human sciences. (And because there is ‘evolutionary’ in the name, they think the evolutionary human sciences must be about claiming capacities for the innate/genes/nature side that the social sciences had wanted to put in acquired/culture/nurture; not really.) In fact, innate/acquired, nature/nurture sorting is not something most of us are especially interested in. Our main hustle is that it is always both, rendering the distinction (at least as applied to mature adult capacities) somewhere between arcane and unhelpful. If it’s acquired, it’s because there are innate resources that make this possible; if it’s culture, it’s because the human genome enables this possibility, and so on. We are not interested in sorting, but in figuring out how and why things actually work. To butcher the famous exchange from The African Queen: the nature/nurture distinction, Mr. Allnut, is what we are put in this world to rise above. But still, the widespread desire to sort capacities into two … Continue reading “Innateness is for animals”
Another great essay!!! Really insightful analysis of issues of so diverse natures. Most interesting for me, since it concerns a personal belief, that the provision of health care should be the number one function of a government. Also, a sound reasoning on the problems faced by science communicators on the use and abuse of the information provided by them. Looking forward to more of your views on that subject.
Hats off to the Mayr citation!
Hi Daniel, enjoying these very much. They are the perfect nap time reading (Penny’s not mine) to give my mat leave squidgy brain a bit of a workout. Looking forward to reading the next instalment. Hope you are well. Take care
Daniel,
I very much enjoyed your essay and think your diminishing returns (DR) argument is a strong one.
I guess you know this but wanted to simplify your essay: increasing the dispersion of income under DR doesn’t necessarily reduce average health outcome. It would do so if the increase in dispersion were symmetric (equally great in the rich and poor directions). If asymmetric, an increase in the high income direction, with its consequent small improvement in health outcome, would have to be large enough to outweigh the relatively large detriment to health outcome due to any decrease in the value of the lowest incomes. Unlikely perhaps but mathematically possible.
A second thought is that the mere fact that greater income brings better health outcomes means that the poor suffer unfairly and we should try to lift people out of poverty (and In a relatively closed system like a nation state this means taking from the rich). This conclusion holds whatever the shape of the function between income and health (linear, DR or whatever). To the extent that Wilkinson & Pickett’s hypothesis is correct their mechanism is an additional way in which inequality results in the poor suffering unfairly, since any stress resulting from perceived societal inequality must surely fall more strongly on the disadvantaged (and you point to evidence for this).
Concerning the “profound unease” of your last few paragraphs I also prefer the stumbling naivety you refer to, openly acknowledging our scientific uncertainty about complex social phenomena. This is not only more honest but, in the long-term I believe, more effective in driving change. Since there will always be other academics to dispute an oversimple claim an apparent ‘controversy amongst the experts’ can be used by policy makers who wish to deny the evidence. And sometimes academic disagreements are relatively unimportant to a case for social change; in the present case of income and health outcomes it might be more effective, as I implied above, to put aside the inequality concept altogether and focus instead on the case for improving the health of the poor by reducing poverty. Of course it is difficult in this argument to avoid comparison with the rich but to the extent that a comparison must be made ‘unfairness’ may be a more broadly acceptable moral label than ‘inequality’. And although, as you say Daniel, the DR argument is more complicated than Wilkinson & Pickett’s, it is a powerful and, I believe, sufficiently understandable point to be used effectively in making the case for the health benefits of reducing poverty (and you say this too). Finally, a purely societally selfish reason for improving the nation’s health is that it reduces pressure on the resources of the National Health Service.
Best, John
John,
Thanks for your helpful and thoughtful comments.
I guess you know this but wanted to simplify your essay: increasing the dispersion of income under DR doesn’t necessarily reduce average health outcome. It would do so if the increase in dispersion were symmetric (equally great in the rich and poor directions). If asymmetric, an increase in the high income direction, with its consequent small improvement in health outcome, would have to be large enough to outweigh the relatively large detriment to health outcome due to any decrease in the value of the lowest incomes. Unlikely perhaps but mathematically possible.
That’s true enough, but I was considering only increases in dispersion that leave the mean income unchanged. I think the asymmetric case you are thinking of would also shift the mean income up (if the total positive gain were greater than the total loss). And the inequality argument is really all about increases in dispersion given a fixed mean – clearly if the whole distribution goes up then even if it goes up unevenly, average health could improve.
A second thought is that the mere fact that greater income brings better health outcomes means that the poor suffer unfairly and we should try to lift people out of poverty (and In a relatively closed system like a nation state this means taking from the rich). This conclusion holds whatever the shape of the function between income and health (linear, DR or whatever). To the extent that Wilkinson & Pickett’s hypothesis is correct their mechanism is an additional way in which inequality results in the poor suffering unfairly, since any stress resulting from perceived societal inequality must surely fall more strongly on the disadvantaged (and you point to evidence for this).
Absolutely – and of course DR and Wilkson and Pickett’s process are not mutually exclusive.
Concerning the “profound unease” of your last few paragraphs I also prefer the stumbling naivety you refer to, openly acknowledging our scientific uncertainty about complex social phenomena. This is not only more honest but, in the long-term I believe, more effective in driving change. Since there will always be other academics to dispute an oversimple claim an apparent ‘controversy amongst the experts’ can be used by policy makers who wish to deny the evidence. And sometimes academic disagreements are relatively unimportant to a case for social change; in the present case of income and health outcomes it might be more effective, as I implied above, to put aside the inequality concept altogether and focus instead on the case for improving the health of the poor by reducing poverty. Of course it is difficult in this argument to avoid comparison with the rich but to the extent that a comparison must be made ‘unfairness’ may be a more broadly acceptable moral label than ‘inequality’. And although, as you say Daniel, the DR argument is more complicated than Wilkinson & Pickett’s, it is a powerful and, I believe, sufficiently understandable point to be used effectively in making the case for the health benefits of reducing poverty (and you say this too). Finally, a purely societally selfish reason for improving the nation’s health is that it reduces pressure on the resources of the National Health Service.
I agree with all of this. And I also think that we need to be more open about our uncertainties, so that the media and public comes to appreciate that some uncertainty in complex scientific matters is the norm. That way ‘the experts disagree’ cannot be used to dismiss the case for action–as if the case where experts disagreed was somehow atypical. We need people to understand that experts always disagree in details of the specifics; but nonetheless there is often broad consensus shining through that disagreement, in cases like climate change and the health consequences of poverty, things that we can all agree on the need for.
Thanks again
Thanks for your response Daniel. On my first point yes, of course you’re right, for this analysis you need to keep the mean income constant, as Wilkinson & Pickett did in theirs. And in this case dispersion of income must change symmetrically and so, given diminishing returns, mean health outcome will decline as dispersion increases.
Total agreement on the final point. And there’s a long way to go in the understanding of science by the public, policy makers and politicians; and the last of these have a vested interest in maintaining (or pretending) some level of ignorance.