The great UBI debate: A tale of two cities? – The Property Chronicle
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The great UBI debate: A tale of two cities?

The Fund Manager

While some argue that covid-19 measures are the start of a permanent new universal basic income (UBI) to mitigate the risk that societies are entirely torn apart, others see UBI as a draw for (younger) people to migrate to cities. Another line of thought sees UBI as a potential impediment for workers looking for self-fulfilment in urban jobs.

Let’s look at some of the socioeconomic data in Europe in order to better understand the various lines of thought:

In-work at-risk-of-poverty ratio
(60% of anational median income, all employed adults aged over 18)

Source: Eurostat, MS graphs

Pretty much all large European economies saw a significant rise of the ‘working poor’ since 2005, most notably Germany (4.8-9.1%). The ‘working poor’ group is defined by having 60% or less of their respective national median income.

When drilling down on those numbers (thanks, Eurostat) two main disparities become obvious: age and education.

Let’s see how this impacts the ‘working poor’ ratio.

The effect of age on the ‘working poor’ ratio

The Fund Manager

About Martin Schwarzburg

Martin Schwarzburg

Martin Schwarzburg is arranging finance for emerging market infrastructure, energy and real estate projects as an emerging market banker with Brigg Macadam. He previously served as Global COO Real Estate for the Abu Dhabi Investment Authority (ADIA) .

Articles by Martin Schwarzburg

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