Minna Ylikännö: Results from the evaluation study of the Finnish Basic Income Experiment 2017-2018.

1. Results from the
evaluation study of the
Finnish Basic Income
Experiment 2017-2018
6th May 2020
O. Kangas, M. Simanainen, S. Jauhiainen, M.
Ylikännö (ed.)

2. Basic Income Experiment 2017-2018
• A nation-wide obligatory basic income experiment, based on a
law on UBI experiment, was conducted in Finland in years 2017–
2018
• The interest was in the impact of a basic income on the
participants’ employment status, income, use of social benefits
and subjective well-being
• In the experiment, 2,000 randomly selected unemployed job
seekers between 25 and 58 years of age received a monthly
payment of €560, unconditionally and without means testing

3. Scientific evaluation of the experiment
• To study the effects of basic income, the treatment group of
2,000 individuals is compared against a control group comprised
of 173,000
• Several subprojects evaluate the experiment from different
perspectives with a rich set of data sources.
• Also, the media coverage of the basic income experiment was
studied as well as public opinion of UBI after the experiment
26.5.20203

4. Employment
• From November 2017 to October 2018 employment increased on
average six days more in the treatment group than in the control
group - more positive employment effects among families with
children, and among those whose mother tongue is other than
Finnish, Swedish or Same
• In January 2018, an activation model was implemented as part of
public UB system
• The employment effects for the second year of the experiment
were a joint effect of the basic income experiment and the
activation model
26.5.20204 For more information, please contact: kari.hamalainen@vatt.fi

5. Subjective wellbeing
• The phone survey was targeted at the 2,000 recipients of a basic
income and at a sample of 5,000 persons in the control group,
and it was conducted in October–December 2018
• The response rate was low, 31% in the treatment group and 20%
in the control group – this is not exceptional today in survey
studies
• The survey results showed significant differences between the
groups on key indicators representing different aspects of
subjective well-being - basic income recipients assessed their
well-being more positively than respondents in the control
group
26.5.20205

6. Subjective wellbeing
• Higher generalized and institutional trust, as well as confidence in
the future and self-confidence among UBI recipients - also, less
stress and symptoms of depression and better cognitive
functioning than the control group
• Financial well-being of UBI recipients was better
• UBI recipients experienced less bureaucracy
• Different aspects of wellbeing were scrutinized in different
subprojects – however they are clearly intertwined
26.5.20206 For more information, please contact: signe.jauhiainen@kela.fi

7. Life on basic income expresses great diversity
• The subproject is based on interviews with 81 basic income
recipients
• Some interviewees portrayed basic income as having
affected their labour market behaviour largely, while others
described it as having had only marginal effects
• These reflections were related to the recipients’ diverse
premises for employment and life in general
26.5.20207 For more information, please contact: helena.blomberg@helsinki.fi

8. Life on basic income expresses great diversity
• For some interviewees, the experiment provided a larger variety
of legitimate modes of participation outside of paid labour
• For some interviewees, the experiment created mental pressure
to gain employment, which led to coping difficulties
• Strengthened autonomy through enhanced possibilities of long-
term financial planning, lessened stress related to bureaucracy
and activation demands, and improved possibilities of doing
meaningful things were reported regardless of changes in
employment
26.5.2020 Yksikkö/Projekti/Esittäjä | Esityksen otsikko8

9. Media coverage and public opinion
• Finnish Basic Income Experiment was largely covered in the
media, and especially in the international media – expresses
and impacts public opinion on UBI
• In the evaluation study, attitudes towards basic income after
the experiment were measured with a phone survey
• In the survey, 46% of the respondents agreed or somewhat
agreed with the statement that a basic income should be
introduced as a permanent part of the Finnish social security
system
26.5.20209
For more information, please contact: katja.makkyla@kela.fi (media analysis)
or olli.kangas@utu.fi (UBI support)

10. Summary
• Positive effects of UBI were observed more often than negative
ones
• The heterogenity of the treatment group becomes most visible in
the interview study
• Results are in accordance with results from other earlier
experiments implemented in other countries (e.g. Canada, US,
Netherlands) – greater effect on wellbeing than employment
• As regards employment, financial support system plays a central
role, but alone it is not sufficient to significantly promote either
labour supply or demand
26.5.202010

11. Thank you!
olli.kangas@utu.fi
miska.simanainen.kela.fi
signe.jauhiainen@kela.fi
minna.ylikanno@kela.fi