Policy Wonk

Finland's basic income experiment

Headline result
+6 days
of employment vs control group, Nov 2017–Oct 2018
RCT
Implemented by
Kela (Social Insurance Institution of Finland)
Type
National government
Where
Finland
Region
Europe
When
2017–2018
Evidence
Randomized controlled trial

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