SlideShare a Scribd company logo

Experimenting basic income in finland

Kela's description of the Finnish basic income experiment.

1 of 7
Download to read offline
Experimenting Basic Income in
Finland
Olli Kangas (olli.kangas@kela.fi)
Professor, Research Director
Kela, Social Insurance Institution of Finland
A Governmental Mandate
• Prime Minister Juha Sipilä’s governmental program includes a
number of social experiments
• The basic income experiment is one of them
• The aim is to reform the existing social policy to better match
with societal changes, abolish work disincentives and diminish
bureaucracy.
• In an open bid the Kela-led research consortium consisting of
• the VATT Institute for Economic Research and Social & kommunalhögskolan
• Universities of Turku and Tampere,
• think tank Tänk,
• the Finnish Innovation Fund (SITRA),
• Federation of Finnish Enterprises.
• There are also experts representing municipalities and constitutional, social and
tax legislation
2
Time table and funding
• Time table for the consortium:
• the first hearing 5. December 2015,
• the interim report 30 March
• the final report 15.11.2016.
• The experiment will start in the beginning
of 2017 and it will last 2 years
• In 2019 results will be evaluated
• The funding comes from the Government
• € 20 bill for two years
3
There is a wide popular support for the basic
income in Finland
Support Wished for level € (median)
• 2002 63% € 622
• 2015 69% € 1 000
• The wished for medians are 1.3 times the level of minimum pension
• Support among voters for all political parties:
• Left League 86%, Social Democrats 69%, Greens 75%,
Centre 62%, True Finns 69%, Christian Democrats 56%,
Swedish People’s Party 83%, Conservatives 54%.
4
Models to be explored and developed
• Full basic income (BI)
• The level of BI is high enough to replace almost all insurance-based
benefits
• Must be rather a high monthly sum
• Partial basic income
• Replaces all ’basic’ benefits but almost all insurance-based benefits
left intact
• Minimum level should not be lower than the present day minimum
level of basic benefits (ca net € 550 a month)
• Negative income tax
• Income transfers via taxation system
• Other models
• Perhaps low BI plus ’participation’ income
5
Methods
• Specification of models to be explored
• Juridical aspects dealing with social legislation
• Taxation
• Juridical aspects dealing with constitution (equal treatment of
residents and right to have social care and income protection)
• Evaluating the costs by micro simulations
• distribution of benefits and costs
• Which options appear to be im/possible
• Planning the experimental setting
• Constitutional limitations: demand of equal treatment of all
− Voluntariness -> selection bias
− Two stage sampling among volunteers: Treatment and control group
− Obligatory:
− Local experiments to capture externalities6

Recommended

Experimenting with basic income in finland
Experimenting with basic income in finlandExperimenting with basic income in finland
Experimenting with basic income in finlandDylan Matthews
 
Can Universal Basic Income solve future Income Security Challenges?
Can Universal Basic Income solve future Income Security Challenges?Can Universal Basic Income solve future Income Security Challenges?
Can Universal Basic Income solve future Income Security Challenges?Kelan tutkimus / Research at Kela
 
Olli Kangas: Finnish Basic Income Experiment
Olli Kangas: Finnish Basic Income ExperimentOlli Kangas: Finnish Basic Income Experiment
Olli Kangas: Finnish Basic Income ExperimentTHL
 
Jurgen de Wispelaere (Tampereen yliopisto): Game On! Is Basic Income Experien...
Jurgen de Wispelaere (Tampereen yliopisto): Game On! Is Basic Income Experien...Jurgen de Wispelaere (Tampereen yliopisto): Game On! Is Basic Income Experien...
Jurgen de Wispelaere (Tampereen yliopisto): Game On! Is Basic Income Experien...Kelan tutkimus / Research at Kela
 
Turning static pessimism to dynamic optimism. An ex-ante evaluation of unempl...
Turning static pessimism to dynamic optimism. An ex-ante evaluation of unempl...Turning static pessimism to dynamic optimism. An ex-ante evaluation of unempl...
Turning static pessimism to dynamic optimism. An ex-ante evaluation of unempl...Kelan tutkimus / Research at Kela
 

More Related Content

What's hot

Finnish Basic Income Experiment 2017-2018 - About the experiment and its’ eva...
Finnish Basic Income Experiment 2017-2018 - About the experiment and its’ eva...Finnish Basic Income Experiment 2017-2018 - About the experiment and its’ eva...
Finnish Basic Income Experiment 2017-2018 - About the experiment and its’ eva...Kelan tutkimus / Research at Kela
 
From idea to experiment - Notes on the Finnish basic income experiment study
From idea to experiment - Notes on the Finnish basic income experiment studyFrom idea to experiment - Notes on the Finnish basic income experiment study
From idea to experiment - Notes on the Finnish basic income experiment studyKelan tutkimus / Research at Kela
 
Basic Income Ireland introductory presentation
Basic Income Ireland introductory presentationBasic Income Ireland introductory presentation
Basic Income Ireland introductory presentationJohn Baker
 
The Sufficiency of Basic Social Security in Finland? Analyzing changes and r...
The Sufficiency of Basic Social Security in Finland? Analyzing changes and r...The Sufficiency of Basic Social Security in Finland? Analyzing changes and r...
The Sufficiency of Basic Social Security in Finland? Analyzing changes and r...TITA research
 
Universal Basic Income
Universal Basic Income Universal Basic Income
Universal Basic Income RobinsonRaja1
 
Plenary session 3 4 holly sutherland
Plenary session 3 4 holly sutherlandPlenary session 3 4 holly sutherland
Plenary session 3 4 holly sutherlandIARIW 2014
 
Pekka Kettunen: Separate or mainstream services?
Pekka Kettunen: Separate or mainstream services?Pekka Kettunen: Separate or mainstream services?
Pekka Kettunen: Separate or mainstream services?THL
 
A case for employment quotas for persons with disabilities
A case for employment quotas for persons with disabilitiesA case for employment quotas for persons with disabilities
A case for employment quotas for persons with disabilitiesHassan Waddimba
 
Institutional framework for equity: Towards gender budgeting - Ronnie DOWNES...
Institutional framework for equity:  Towards gender budgeting - Ronnie DOWNES...Institutional framework for equity:  Towards gender budgeting - Ronnie DOWNES...
Institutional framework for equity: Towards gender budgeting - Ronnie DOWNES...OECD Governance
 

What's hot (20)

Opening words
Opening words Opening words
Opening words
 
Policy, mirror, or metaphor? The political economy of ubi
Policy, mirror, or metaphor? The political economy of ubiPolicy, mirror, or metaphor? The political economy of ubi
Policy, mirror, or metaphor? The political economy of ubi
 
Growth regimes, statecraft and incremental change
Growth regimes, statecraft and incremental change Growth regimes, statecraft and incremental change
Growth regimes, statecraft and incremental change
 
Finnish Basic Income Experiment 2017-2018 - About the experiment and its’ eva...
Finnish Basic Income Experiment 2017-2018 - About the experiment and its’ eva...Finnish Basic Income Experiment 2017-2018 - About the experiment and its’ eva...
Finnish Basic Income Experiment 2017-2018 - About the experiment and its’ eva...
 
The Finnish Basic Income Experiment 2017-2018
The Finnish Basic Income Experiment 2017-2018The Finnish Basic Income Experiment 2017-2018
The Finnish Basic Income Experiment 2017-2018
 
Ubi and ongoing social security reform
Ubi and ongoing social security reform Ubi and ongoing social security reform
Ubi and ongoing social security reform
 
Benefit take up in the finnish basic income experiment
Benefit take up in the finnish basic income experimentBenefit take up in the finnish basic income experiment
Benefit take up in the finnish basic income experiment
 
From idea to experiment - Notes on the Finnish basic income experiment study
From idea to experiment - Notes on the Finnish basic income experiment studyFrom idea to experiment - Notes on the Finnish basic income experiment study
From idea to experiment - Notes on the Finnish basic income experiment study
 
Finland’s basic income experiment 2017–2018
Finland’s basic income experiment 2017–2018Finland’s basic income experiment 2017–2018
Finland’s basic income experiment 2017–2018
 
Basic Income Ireland introductory presentation
Basic Income Ireland introductory presentationBasic Income Ireland introductory presentation
Basic Income Ireland introductory presentation
 
The Sufficiency of Basic Social Security in Finland? Analyzing changes and r...
The Sufficiency of Basic Social Security in Finland? Analyzing changes and r...The Sufficiency of Basic Social Security in Finland? Analyzing changes and r...
The Sufficiency of Basic Social Security in Finland? Analyzing changes and r...
 
Universal Basic Income
Universal Basic Income Universal Basic Income
Universal Basic Income
 
Plenary session 3 4 holly sutherland
Plenary session 3 4 holly sutherlandPlenary session 3 4 holly sutherland
Plenary session 3 4 holly sutherland
 
Minimum income and poverty indicators and targets
Minimum income and poverty indicators and targetsMinimum income and poverty indicators and targets
Minimum income and poverty indicators and targets
 
Experimenting with Income Support in the Netherlands
Experimenting with Income Support in the NetherlandsExperimenting with Income Support in the Netherlands
Experimenting with Income Support in the Netherlands
 
Scherie Nicol - OECD
Scherie Nicol - OECDScherie Nicol - OECD
Scherie Nicol - OECD
 
EAPN proposals for an EU framework on Minimum Income and Proposals on Indicators
EAPN proposals for an EU framework on Minimum Income and Proposals on IndicatorsEAPN proposals for an EU framework on Minimum Income and Proposals on Indicators
EAPN proposals for an EU framework on Minimum Income and Proposals on Indicators
 
Pekka Kettunen: Separate or mainstream services?
Pekka Kettunen: Separate or mainstream services?Pekka Kettunen: Separate or mainstream services?
Pekka Kettunen: Separate or mainstream services?
 
A case for employment quotas for persons with disabilities
A case for employment quotas for persons with disabilitiesA case for employment quotas for persons with disabilities
A case for employment quotas for persons with disabilities
 
Institutional framework for equity: Towards gender budgeting - Ronnie DOWNES...
Institutional framework for equity:  Towards gender budgeting - Ronnie DOWNES...Institutional framework for equity:  Towards gender budgeting - Ronnie DOWNES...
Institutional framework for equity: Towards gender budgeting - Ronnie DOWNES...
 

Similar to Experimenting basic income in finland

Resa koleva oecd capacity building seminar
Resa koleva   oecd capacity building seminarResa koleva   oecd capacity building seminar
Resa koleva oecd capacity building seminarOECD CFE
 
Disabled Facilities Grant and Other Adaptations: External Review 2018
Disabled Facilities Grant and Other Adaptations: External Review 2018Disabled Facilities Grant and Other Adaptations: External Review 2018
Disabled Facilities Grant and Other Adaptations: External Review 2018Foundations
 
Antti Kasvio (FIOH): Some heretic thoughts about basic income & new forms o...
Antti Kasvio (FIOH): Some heretic thoughts about basic income & new forms o...Antti Kasvio (FIOH): Some heretic thoughts about basic income & new forms o...
Antti Kasvio (FIOH): Some heretic thoughts about basic income & new forms o...Kelan tutkimus / Research at Kela
 
French visit grand_marina_mll2012
French visit grand_marina_mll2012French visit grand_marina_mll2012
French visit grand_marina_mll2012Eero Siljander
 
Marjukka Turunen basic income experiment in practice 12012017
Marjukka Turunen basic income experiment in practice 12012017Marjukka Turunen basic income experiment in practice 12012017
Marjukka Turunen basic income experiment in practice 12012017Kela
 
"Social investment", data analysis & targeting public expenditures - Andrew B...
"Social investment", data analysis & targeting public expenditures - Andrew B..."Social investment", data analysis & targeting public expenditures - Andrew B...
"Social investment", data analysis & targeting public expenditures - Andrew B...OECD Governance
 
Presentation gender pensions neri seminar m collins ucd 2 may 18
Presentation gender pensions neri seminar m collins ucd 2 may 18Presentation gender pensions neri seminar m collins ucd 2 may 18
Presentation gender pensions neri seminar m collins ucd 2 may 18NevinInstitute
 
Governance indonesia & vietnam mar7 - kris hort
Governance indonesia & vietnam   mar7 - kris hortGovernance indonesia & vietnam   mar7 - kris hort
Governance indonesia & vietnam mar7 - kris hortcaitlingrover
 
Costing Interventions on Domestic Violence Against Women in Mozambique
Costing Interventions on Domestic Violence Against Women in MozambiqueCosting Interventions on Domestic Violence Against Women in Mozambique
Costing Interventions on Domestic Violence Against Women in MozambiqueGobernabilidad
 
The european commission's current agenda on personal and household services ...
The european commission's current agenda on personal and household services  ...The european commission's current agenda on personal and household services  ...
The european commission's current agenda on personal and household services ...CARER+ Project
 
Understanding Social Impact Bonds- Antonella Noya/ Stellina Galitopoulou, OECD
Understanding Social Impact Bonds- Antonella Noya/ Stellina Galitopoulou, OECDUnderstanding Social Impact Bonds- Antonella Noya/ Stellina Galitopoulou, OECD
Understanding Social Impact Bonds- Antonella Noya/ Stellina Galitopoulou, OECDOECD CFE
 
Pro-productivity Institutions: Learning From National Experience
Pro-productivity Institutions: Learning From National ExperiencePro-productivity Institutions: Learning From National Experience
Pro-productivity Institutions: Learning From National ExperienceStructuralpolicyanalysis
 
A Taxation and Benefits System to End Child Poverty - John Dickie
A Taxation and Benefits System to End Child Poverty - John DickieA Taxation and Benefits System to End Child Poverty - John Dickie
A Taxation and Benefits System to End Child Poverty - John DickieOxfam GB
 

Similar to Experimenting basic income in finland (20)

Resa koleva oecd capacity building seminar
Resa koleva   oecd capacity building seminarResa koleva   oecd capacity building seminar
Resa koleva oecd capacity building seminar
 
Disabled Facilities Grant and Other Adaptations: External Review 2018
Disabled Facilities Grant and Other Adaptations: External Review 2018Disabled Facilities Grant and Other Adaptations: External Review 2018
Disabled Facilities Grant and Other Adaptations: External Review 2018
 
General Information: The Finnish Basic Income Experiment
General Information: The Finnish Basic Income ExperimentGeneral Information: The Finnish Basic Income Experiment
General Information: The Finnish Basic Income Experiment
 
Antti Kasvio (FIOH): Some heretic thoughts about basic income & new forms o...
Antti Kasvio (FIOH): Some heretic thoughts about basic income & new forms o...Antti Kasvio (FIOH): Some heretic thoughts about basic income & new forms o...
Antti Kasvio (FIOH): Some heretic thoughts about basic income & new forms o...
 
French visit grand_marina_mll2012
French visit grand_marina_mll2012French visit grand_marina_mll2012
French visit grand_marina_mll2012
 
Lecture 2
Lecture 2Lecture 2
Lecture 2
 
Tax and Governance Case Study - ICTD Learning Portal.pptx
Tax and Governance Case Study - ICTD Learning Portal.pptxTax and Governance Case Study - ICTD Learning Portal.pptx
Tax and Governance Case Study - ICTD Learning Portal.pptx
 
1.3.3 Lara Fergus
1.3.3 Lara Fergus1.3.3 Lara Fergus
1.3.3 Lara Fergus
 
Marjukka Turunen basic income experiment in practice 12012017
Marjukka Turunen basic income experiment in practice 12012017Marjukka Turunen basic income experiment in practice 12012017
Marjukka Turunen basic income experiment in practice 12012017
 
Pensions Core Course 2013: Measures to Increase Coverage in the 2008 Chilean ...
Pensions Core Course 2013: Measures to Increase Coverage in the 2008 Chilean ...Pensions Core Course 2013: Measures to Increase Coverage in the 2008 Chilean ...
Pensions Core Course 2013: Measures to Increase Coverage in the 2008 Chilean ...
 
"Social investment", data analysis & targeting public expenditures - Andrew B...
"Social investment", data analysis & targeting public expenditures - Andrew B..."Social investment", data analysis & targeting public expenditures - Andrew B...
"Social investment", data analysis & targeting public expenditures - Andrew B...
 
Presentation gender pensions neri seminar m collins ucd 2 may 18
Presentation gender pensions neri seminar m collins ucd 2 may 18Presentation gender pensions neri seminar m collins ucd 2 may 18
Presentation gender pensions neri seminar m collins ucd 2 may 18
 
Governance indonesia & vietnam mar7 - kris hort
Governance indonesia & vietnam   mar7 - kris hortGovernance indonesia & vietnam   mar7 - kris hort
Governance indonesia & vietnam mar7 - kris hort
 
Which guaranteed minimum income regime works best?
Which guaranteed minimum income regime works best?Which guaranteed minimum income regime works best?
Which guaranteed minimum income regime works best?
 
Costing Interventions on Domestic Violence Against Women in Mozambique
Costing Interventions on Domestic Violence Against Women in MozambiqueCosting Interventions on Domestic Violence Against Women in Mozambique
Costing Interventions on Domestic Violence Against Women in Mozambique
 
The european commission's current agenda on personal and household services ...
The european commission's current agenda on personal and household services  ...The european commission's current agenda on personal and household services  ...
The european commission's current agenda on personal and household services ...
 
The basic income experiment in Finland
The basic income experiment in FinlandThe basic income experiment in Finland
The basic income experiment in Finland
 
Understanding Social Impact Bonds- Antonella Noya/ Stellina Galitopoulou, OECD
Understanding Social Impact Bonds- Antonella Noya/ Stellina Galitopoulou, OECDUnderstanding Social Impact Bonds- Antonella Noya/ Stellina Galitopoulou, OECD
Understanding Social Impact Bonds- Antonella Noya/ Stellina Galitopoulou, OECD
 
Pro-productivity Institutions: Learning From National Experience
Pro-productivity Institutions: Learning From National ExperiencePro-productivity Institutions: Learning From National Experience
Pro-productivity Institutions: Learning From National Experience
 
A Taxation and Benefits System to End Child Poverty - John Dickie
A Taxation and Benefits System to End Child Poverty - John DickieA Taxation and Benefits System to End Child Poverty - John Dickie
A Taxation and Benefits System to End Child Poverty - John Dickie
 

Recently uploaded

PMAI PM24 International Conference Program Schedule
PMAI PM24 International Conference Program SchedulePMAI PM24 International Conference Program Schedule
PMAI PM24 International Conference Program Schedulenissamant
 
2024: The FAR, Federal Acquisition Regulations - Part 7
2024: The FAR, Federal Acquisition Regulations - Part 72024: The FAR, Federal Acquisition Regulations - Part 7
2024: The FAR, Federal Acquisition Regulations - Part 7JSchaus & Associates
 
How to upgrade EU benchmarking in Fundamentals: the case of judicial reform i...
How to upgrade EU benchmarking in Fundamentals: the case of judicial reform i...How to upgrade EU benchmarking in Fundamentals: the case of judicial reform i...
How to upgrade EU benchmarking in Fundamentals: the case of judicial reform i...Centre of Policy and Legal Reform
 
UN Summit of the Future: Draft Outcome Document
UN Summit of the Future: Draft Outcome DocumentUN Summit of the Future: Draft Outcome Document
UN Summit of the Future: Draft Outcome DocumentEnergy for One World
 
Presentation of the European Youth Foundation
Presentation of the European Youth FoundationPresentation of the European Youth Foundation
Presentation of the European Youth FoundationEuropeanYouthFoundation
 
Manuscript Template Name of the Author PM24
Manuscript Template Name of the Author PM24Manuscript Template Name of the Author PM24
Manuscript Template Name of the Author PM24nissamant
 
Central Winds Park Pickleball Instructional Programs Agreement
Central Winds Park Pickleball Instructional Programs AgreementCentral Winds Park Pickleball Instructional Programs Agreement
Central Winds Park Pickleball Instructional Programs AgreementVictoriaColangelo
 
IEF Energy Outlooks Comparison Report-2024
IEF Energy Outlooks Comparison Report-2024IEF Energy Outlooks Comparison Report-2024
IEF Energy Outlooks Comparison Report-2024Energy for One World
 
Extract Slides: Munich Security Conference 2024_ Lose- Lose_ (3).pdf
Extract Slides: Munich Security Conference 2024_ Lose- Lose_ (3).pdfExtract Slides: Munich Security Conference 2024_ Lose- Lose_ (3).pdf
Extract Slides: Munich Security Conference 2024_ Lose- Lose_ (3).pdfEnergy for One World
 
Trading standards: How exposure to global trade shapes our living standards
Trading standards: How exposure to global trade shapes our living standardsTrading standards: How exposure to global trade shapes our living standards
Trading standards: How exposure to global trade shapes our living standardsResolutionFoundation
 
""THE BARANGAY NUTRITION COMMITTEE.pptx"
""THE BARANGAY NUTRITION COMMITTEE.pptx"""THE BARANGAY NUTRITION COMMITTEE.pptx"
""THE BARANGAY NUTRITION COMMITTEE.pptx"rodilyAcua
 
2023 Winter Springs Water and Wastewater Rate Study Presentation
2023 Winter Springs Water and Wastewater Rate Study Presentation2023 Winter Springs Water and Wastewater Rate Study Presentation
2023 Winter Springs Water and Wastewater Rate Study PresentationVictoriaColangelo
 
MPA Lecture on Stakeholder Analysis.pptx
MPA Lecture on Stakeholder Analysis.pptxMPA Lecture on Stakeholder Analysis.pptx
MPA Lecture on Stakeholder Analysis.pptxJo Balucanag - Bitonio
 
Tax cuts today, spending cuts tomorrow? How the Budget might shape the Genera...
Tax cuts today, spending cuts tomorrow? How the Budget might shape the Genera...Tax cuts today, spending cuts tomorrow? How the Budget might shape the Genera...
Tax cuts today, spending cuts tomorrow? How the Budget might shape the Genera...ResolutionFoundation
 
PMAI PM24: Guidelines for the Poster Presentation
PMAI PM24: Guidelines for the Poster PresentationPMAI PM24: Guidelines for the Poster Presentation
PMAI PM24: Guidelines for the Poster Presentationnissamant
 
PM International Conference 24 Poster Template
PM International Conference 24 Poster TemplatePM International Conference 24 Poster Template
PM International Conference 24 Poster Templatenissamant
 
Lecture Presentation on Project Proposal
Lecture Presentation on Project ProposalLecture Presentation on Project Proposal
Lecture Presentation on Project ProposalJo Balucanag - Bitonio
 
Observance of the International Mother Language Day (IMLD) 2024.pdf
Observance of the International Mother Language Day (IMLD) 2024.pdfObservance of the International Mother Language Day (IMLD) 2024.pdf
Observance of the International Mother Language Day (IMLD) 2024.pdfChristina Parmionova
 
Vertical Integration Webinar Presentation - NAPGN.pptx
Vertical Integration Webinar Presentation - NAPGN.pptxVertical Integration Webinar Presentation - NAPGN.pptx
Vertical Integration Webinar Presentation - NAPGN.pptxNAP Global Network
 

Recently uploaded (20)

PMAI PM24 International Conference Program Schedule
PMAI PM24 International Conference Program SchedulePMAI PM24 International Conference Program Schedule
PMAI PM24 International Conference Program Schedule
 
2024: The FAR, Federal Acquisition Regulations - Part 7
2024: The FAR, Federal Acquisition Regulations - Part 72024: The FAR, Federal Acquisition Regulations - Part 7
2024: The FAR, Federal Acquisition Regulations - Part 7
 
How to upgrade EU benchmarking in Fundamentals: the case of judicial reform i...
How to upgrade EU benchmarking in Fundamentals: the case of judicial reform i...How to upgrade EU benchmarking in Fundamentals: the case of judicial reform i...
How to upgrade EU benchmarking in Fundamentals: the case of judicial reform i...
 
UN Summit of the Future: Draft Outcome Document
UN Summit of the Future: Draft Outcome DocumentUN Summit of the Future: Draft Outcome Document
UN Summit of the Future: Draft Outcome Document
 
Presentation of the European Youth Foundation
Presentation of the European Youth FoundationPresentation of the European Youth Foundation
Presentation of the European Youth Foundation
 
Manuscript Template Name of the Author PM24
Manuscript Template Name of the Author PM24Manuscript Template Name of the Author PM24
Manuscript Template Name of the Author PM24
 
Central Winds Park Pickleball Instructional Programs Agreement
Central Winds Park Pickleball Instructional Programs AgreementCentral Winds Park Pickleball Instructional Programs Agreement
Central Winds Park Pickleball Instructional Programs Agreement
 
IEF Energy Outlooks Comparison Report-2024
IEF Energy Outlooks Comparison Report-2024IEF Energy Outlooks Comparison Report-2024
IEF Energy Outlooks Comparison Report-2024
 
Rahil Foundation
Rahil Foundation Rahil Foundation
Rahil Foundation
 
Extract Slides: Munich Security Conference 2024_ Lose- Lose_ (3).pdf
Extract Slides: Munich Security Conference 2024_ Lose- Lose_ (3).pdfExtract Slides: Munich Security Conference 2024_ Lose- Lose_ (3).pdf
Extract Slides: Munich Security Conference 2024_ Lose- Lose_ (3).pdf
 
Trading standards: How exposure to global trade shapes our living standards
Trading standards: How exposure to global trade shapes our living standardsTrading standards: How exposure to global trade shapes our living standards
Trading standards: How exposure to global trade shapes our living standards
 
""THE BARANGAY NUTRITION COMMITTEE.pptx"
""THE BARANGAY NUTRITION COMMITTEE.pptx"""THE BARANGAY NUTRITION COMMITTEE.pptx"
""THE BARANGAY NUTRITION COMMITTEE.pptx"
 
2023 Winter Springs Water and Wastewater Rate Study Presentation
2023 Winter Springs Water and Wastewater Rate Study Presentation2023 Winter Springs Water and Wastewater Rate Study Presentation
2023 Winter Springs Water and Wastewater Rate Study Presentation
 
MPA Lecture on Stakeholder Analysis.pptx
MPA Lecture on Stakeholder Analysis.pptxMPA Lecture on Stakeholder Analysis.pptx
MPA Lecture on Stakeholder Analysis.pptx
 
Tax cuts today, spending cuts tomorrow? How the Budget might shape the Genera...
Tax cuts today, spending cuts tomorrow? How the Budget might shape the Genera...Tax cuts today, spending cuts tomorrow? How the Budget might shape the Genera...
Tax cuts today, spending cuts tomorrow? How the Budget might shape the Genera...
 
PMAI PM24: Guidelines for the Poster Presentation
PMAI PM24: Guidelines for the Poster PresentationPMAI PM24: Guidelines for the Poster Presentation
PMAI PM24: Guidelines for the Poster Presentation
 
PM International Conference 24 Poster Template
PM International Conference 24 Poster TemplatePM International Conference 24 Poster Template
PM International Conference 24 Poster Template
 
Lecture Presentation on Project Proposal
Lecture Presentation on Project ProposalLecture Presentation on Project Proposal
Lecture Presentation on Project Proposal
 
Observance of the International Mother Language Day (IMLD) 2024.pdf
Observance of the International Mother Language Day (IMLD) 2024.pdfObservance of the International Mother Language Day (IMLD) 2024.pdf
Observance of the International Mother Language Day (IMLD) 2024.pdf
 
Vertical Integration Webinar Presentation - NAPGN.pptx
Vertical Integration Webinar Presentation - NAPGN.pptxVertical Integration Webinar Presentation - NAPGN.pptx
Vertical Integration Webinar Presentation - NAPGN.pptx
 

Experimenting basic income in finland

  • 1. Experimenting Basic Income in Finland Olli Kangas (olli.kangas@kela.fi) Professor, Research Director Kela, Social Insurance Institution of Finland
  • 2. A Governmental Mandate • Prime Minister Juha Sipilä’s governmental program includes a number of social experiments • The basic income experiment is one of them • The aim is to reform the existing social policy to better match with societal changes, abolish work disincentives and diminish bureaucracy. • In an open bid the Kela-led research consortium consisting of • the VATT Institute for Economic Research and Social & kommunalhögskolan • Universities of Turku and Tampere, • think tank Tänk, • the Finnish Innovation Fund (SITRA), • Federation of Finnish Enterprises. • There are also experts representing municipalities and constitutional, social and tax legislation 2
  • 3. Time table and funding • Time table for the consortium: • the first hearing 5. December 2015, • the interim report 30 March • the final report 15.11.2016. • The experiment will start in the beginning of 2017 and it will last 2 years • In 2019 results will be evaluated • The funding comes from the Government • € 20 bill for two years 3
  • 4. There is a wide popular support for the basic income in Finland Support Wished for level € (median) • 2002 63% € 622 • 2015 69% € 1 000 • The wished for medians are 1.3 times the level of minimum pension • Support among voters for all political parties: • Left League 86%, Social Democrats 69%, Greens 75%, Centre 62%, True Finns 69%, Christian Democrats 56%, Swedish People’s Party 83%, Conservatives 54%. 4
  • 5. Models to be explored and developed • Full basic income (BI) • The level of BI is high enough to replace almost all insurance-based benefits • Must be rather a high monthly sum • Partial basic income • Replaces all ’basic’ benefits but almost all insurance-based benefits left intact • Minimum level should not be lower than the present day minimum level of basic benefits (ca net € 550 a month) • Negative income tax • Income transfers via taxation system • Other models • Perhaps low BI plus ’participation’ income 5
  • 6. Methods • Specification of models to be explored • Juridical aspects dealing with social legislation • Taxation • Juridical aspects dealing with constitution (equal treatment of residents and right to have social care and income protection) • Evaluating the costs by micro simulations • distribution of benefits and costs • Which options appear to be im/possible • Planning the experimental setting • Constitutional limitations: demand of equal treatment of all − Voluntariness -> selection bias − Two stage sampling among volunteers: Treatment and control group − Obligatory: − Local experiments to capture externalities6
  • 7. Experimental settings (an example of an optimal research setting, no areas selected yet) • To get scientifically reliable results and evidence for policy making the experimental setting must • Include a sufficient number of households (rather than individuals) • Be nationally representative • A nation level randomization of 10 000 cases • Include a county level experiments • A random sample of 10% of a county • local experiments in order to capture institutional and interaction effects and various externalities • e.g. as follows: local municipalities with 10%, 30% random sampling and perhaps 2 municipalities with 100% samples.7