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Objectives and implementation of the Basic Income Experiment
Objectives of the Basic Income Experiment
The basic income is a form of social security in which all citizens receive a regular, unconditional sum of money towards their expenses. It is intended to reduce the amount of work involved in seeking financial assistance and to free up time and resources for other activities such as working or seeking employment.
Finland will conduct an experiment testing a basic income in 2017-2018. The experiment will be implemented by Kela, the Social Insurance Institution of Finland.
The basic income experiment seeks answers to the following questions:
- How could the social security system be redesigned to address the changing nature of work?
- Can the social security system be reshaped in a way that promotes active participation and gives people a stronger incentive to work?
- Can bureaucracy be reduced and the complicated benefits system simplified?
Implementation of the basic income experiment
Because of the nature of the experiment, Finnish citizens will not all be paid a basic income. The study population will consist of 2,000 persons selected at random in December 2016.
They will be paid a basic income for a period of two years (1 January 2017 - 31 December 2018). Set at €560 per month, the basic income is paid unconditionally and without means testing. Recipients get it automatically once a month.
Studying the impact of the experiment
A follow-up study will be conducted about the basic income experiment in which the study population is compared with a control group. The control group comprises all those who are not selected into the study population. They will not be paid a basic income.
The purpose of the study is to examine the impact of the basic income. One of the topics studied is whether there are differences in employment rates between those receiving and those not receiving a basic income.
Last modified 13/01/2017