Finland conducted a basic income experiment from 2017 to 2018, providing 2,000 randomly selected unemployed individuals with a monthly tax-exempt income of 560 euros to assess the social security system's effectiveness. Preliminary results indicated improved self-perceived wellbeing among recipients, with less financial stress and health issues compared to a control group, although no significant impact on employment was observed in the first year. The evaluation of the experiment is ongoing, with results expected to inform future reforms of the social security system.

1. Finland’s basic income experiment
2017–2018

2. In Finland, the social security system aims to
safeguard sufficient economic security in all life
situations.

4. Sufficient economic security in all life situations
• The social security system aims to safeguard sufficient economic security in
situations where a person is unable to provide for himself or herself.
• old age, incapacity for work, illness, unemployment, childbirth, death of the family
breadwinner, rehabilitation or studies
• The social security system consists of services and cash benefits that provide
economic security.

5. Based on residence or employment
• Overall, the Finnish social security system covers those who live in Finland
on a permanent basis and those who work in Finland.
• In certain situations, persons who stay abroad can also be covered by the Finnish social
security system.
• Employers receive compensations for the costs for the employees’ sick
leaves, family leaves and occupational health care.

6. Financed through taxes and insurance contributions
• The social security system is implemented by
• the Social Insurance Institution (Kela)
• the municipalities
• the unemployment funds
• pension companies
• other insurance providers.
• The system is financed through taxes and insurance contributions.

7. Kela – the Social Insurance Institution of Finland
• Kela offers many social security benefits.
• e.g. family benefits, health insurance, rehabilitation, basic unemployment security, basic
social assistance, housing benefits, financial aid for students, disability benefits and basic
pensions.
• Every year, our customers make approximately 2 million visits to our
customer service locations and contact us 1.6 million times by phone.
• Kela operates under the supervision of the Finnish Parliament.

8. A basic income experiment was conducted in
Finland in 2017–2018 to find ways to reshape the
social security system.

9. https://www.youtube.com/watch?v=8xPAlEkT0kk

11. A two-year experiment
• A basic income experiment was conducted in Finland in 2017–2018.
• 2,000 randomly selected unemployed persons were paid a monthly tax-
exempt basic income of 560 euros.
• regardless of any other income they may have had or whether they were actively
looking for work
• The purpose was to find ways to reshape the social security system in
response to changes in the labour market.
• Launched by the Government of Prime Minister Juha Sipilä
• Implemented by Kela

12. Recipients were selected through random sampling
• The recipients of a basic income were selected through random sampling
among those who in November 2016 received an unemployment benefit
from Kela.
• The control group consisted of those who in November 2016 received an
unemployment benefit from Kela but were not selected for the experiment.

13. The basic income experiment was an exceptional
social experiment both domestically and
internationally.

14. Exceptional experiment
• The basic income experiment was set up as a nation-wide, randomised field
experiment.
• Participation in the experiment was not voluntary.
• This means that it is possible to draw more reliable conclusions of the
effects than was the case in previous experiments which were based on
voluntary participation.

15. Evaluation study of the basic income experiment
is underway.

16. Evaluation study
• The evaluation study of the basic income experiment generates data that
can be used when reshaping the social security system.
• The results will be published in stages during 2019 and 2020.
• The first, preliminary results were published in February 2019.

17. Preliminary results: self-perceived wellbeing
improved, during the first year no effects on
employment

18. https://www.youtube.com/watch?v=aYjVQ8BYLDk

21. During the first year no effects on employment
• During the first year of the experiment, the basic income recipients did
neither less nor more work than those in the control group.
• The basic income recipients had no obligation to participate in services
offered by the employment authorities. Nevertheless, they participated in
such services nearly as much as others.
• The study of the employment effects is based on register data for the first
year of the experiment.

22. Self-perceived wellbeing improved
• Survey respondents who received a basic income had less stress symptoms
as well as less difficulties to concentrate and less health problems than
respondents in the control group.
• The basic income recipients had more trust in other people and social
institutions.
• politicians, political parties, police and the courts
• They also had more faith in their own opportunities for employment and to
make an impact.

24. Less financial insecurity
• The basic income recipients described their financial situation more
positively than the control group.
• They also experienced less stress and fewer financial worries.
• even recipients who had difficulty making ends meet
• The effects on wellbeing was studied through a survey which was done by
phone just before the experiment ended.
• The response rate was 23% (31% for the recipients of a basic income and 20% for the
control group).

25. The first results are to some extent preliminary.

26. The first results are preliminary
• It is not yet possible to draw any firm conclusions of the effects of the basic
income experiment.
• The register data are available with a one year delay.
• The evaluation also includes an interview study, which was carried out in spring 2019.
• Reliable evaluations of the effects will be available when all the materials
gathered have been analysed while taking into account the parameters that
constituted a framework for the experiment.

28. More information

29. More information:
• Professor, Head of the Research Team Olli Kangas, University of Turku
• tel. +358 45 138 3790, firstname.lastname@utu.fi
• Senior Researcher Minna Ylikännö, Kela
• tel. +358 50 313 8712, firstname.lastname@kela.fi
• Research Manager Signe Jauhiainen, Kela
• tel. +358 50 331 3982, firstname.lastname@kela.fi
• kela.fi/basic-income-experiment

30. Etunimi Sukunimi
titteli
Kela, Yksikön nimi, ryhmän nimi
@Twitter-tunnus