The challenge
Unemployment benefits were complex and could discourage people from taking short-term work.
The case
In 2017 and 2018, Finland's social insurance agency Kela paid 2,000 randomly selected unemployed people €560 a month with no conditions, and kept paying even if they found work. Their outcomes were compared with unemployed people on standard benefits. Employment effects were small: recipients worked slightly more days than the control group. But they reported noticeably better wellbeing, less stress and more trust in institutions and in their own future. Over November 2017 to October 2018, basic income increased employment by 6 days, with recipients employed 78 days on average, Kela and the ministry reported.
Why the results were mixed
A basic income did not discourage work, but on its own it didn't move many people into jobs either. The experiment was small and ran during a separate reform of unemployment rules, which made the employment results harder to read.
Sources
- Kangas, O., Jauhiainen, S., Simanainen, M., & Ylikännö, M. (2020). Evaluation of the Finnish Basic Income Experiment. Ministry of Social Affairs and Health, Finland.
- Ministry of Social Affairs and Health & Kela (2020). Results of the basic income experiment: small employment effects, better perceived economic security and mental wellbeing. Press release, 6 May 2020.
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