Basic Income Experiment.pdf

The Finnish basic income experiment, conducted from 2017 to 2018, aimed to assess whether basic income could make the social security system more inclusive and increase labor supply. The experiment was evaluated by Kela, the Social Insurance Institution of Finland, in collaboration with several research institutions. The study utilized registry, survey, and interview data to examine the effects of basic income on employment and wellbeing. Preliminary results showed that basic income had a positive impact on wellbeing, but the effect on employment was minimal. The experiment involved 2,000 unemployed individuals who received a monthly basic income of €560. The results of the study will be reported in stages from 2019 to 2020. Key findings include:

Basic income recipients reported better wellbeing, life satisfaction, and trust in institutions
No significant increase in employment was observed among basic income recipients
The experiment had a positive impact on food security, housing, and financial stability
Basic income recipients were more likely to start their own businesses or engage in freelance work

The study's results will inform policy decisions on social security and labor market reform in Finland. The experiment's findings have implications for other countries considering basic income as a potential solution to poverty and inequality.