A basic income experiment was conducted in Finland in 2017–2018. During the experiment, a total of 2,000 unemployed persons between 25 and 58 years of age received a monthly payment of €560, unconditionally, and without means testing.
A basic income experiment was conducted in Finland in 2017–2018. During the experiment, a total of 2,000 unemployed persons between 25 and 58 years of age received a monthly payment of €560, unconditionally, and without means testing.
The test has now been evaluated, which showed that the basic income did not increase the employment level of the participants in the first year of the experiment. However, after two years the evaluation indicated very small but positive employment effects, better perceived economic security and improved mental wellbeing. The effects on wellbeing were studied through a survey.
Survey respondents who received a basic income described their wellbeing more positively than respondents in the control group. They were more satisfied with their lives and experienced less mental strain, depression, sadness and loneliness. They also had a more positive perception of their own memory, learning and ability to concentrate. Additionally, the respondents who received a basic income had a more positive perception of their income and economic wellbeing than the control group. They were also more confident in their future and in their ability to influence societal issues.
"What we need is time and engaged stakeholders to perform as a big innovative project as the basic income experiment."
Kela , Statens ekonomiska forskningscentral , Åbo university, Helsinki university, Labor Institute for Economic Research, Mieli Mental Health Finland, Tänk (think tank), and the National Government.
The national government.
The main purpose of the experiment was to produce information on how the basic income has affected the participants' employment, income and wellbeing. Furthermore, the aim was to better be able to evaluate if basic income can be a way to reform the social security system - making it easier to use and more efficient in motivating people to work.
"What we need is time and engaged stakeholders to perform as a big innovative project as the basic income experiment. We need politicians not only to plan but to listen to and trust the scientists and evaluate the effects for society. Beyond term of office and political winds.”
Minna Ylikännö, Kela
"This experiment has deficits, but it is still unique in the world. When combining our results with international research it is possible to draw more reliable conclusions.”
Olli Kangas, Kela.
Societal trends: Beyond GDP growth, Distorted allocation of resources
This case can be connected to the following SDGs: No. 1 - No poverty, No. 3 - Good health and well-being, and No. 10 - Reduced inequalities. All due to the aim to increase the income, decrease unemployment, and improve well-being of vulnerable groups in the society.
Interview with: Minna Ylikännö, PhD (Soc.Sc.), Head of Research Team - Basic Income Experiment, Kela.
https://www.dn.se/ekonomi/finland-medborgarlon-fick-folk-att-ma-battre/