Abstract

Given the increasing potential of automation in the primary and industrial sectors of the economy, it is helpful to take a mesoeconomic, i. e. sectoral, look at the concept of a basic income. We present a thought experiment centred on societies in which labour takes place only in the service sector. We identify service sectors like prostitution in which it may be advantageous to shift away from the market and sectors like health services where public involvement is indispensable. Introducing a basic income may also generate social capital, which usually accompanies service provision in the sphere of cooperation.