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Finnish Basic Income Experiment
Last registered on December 13, 2019

Pre-Trial

Trial Information
General Information
Title
Finnish Basic Income Experiment
RCT ID
AEARCTR-0002095
Initial registration date
March 14, 2017
Last updated
December 13, 2019 6:44 AM EST
Location(s)
Primary Investigator
Affiliation
VATT Institute for Economic Research
Other Primary Investigator(s)
PI Affiliation
Labour Institute for Economic Research
PI Affiliation
VATT Institute for Economic Research
Additional Trial Information
Status
Completed
Start date
2017-01-01
End date
2018-12-31
Secondary IDs
Abstract
Finnish Basic Income Experiment is a large scale randomized field experiment organized by the Social Insurance Institution of Finland. The experiment began in January 2017 and it includes 2,000 unemployed workers receiving basic income. The basic income is 560 euros per month and it is paid unconditionally for two years. We will evaluate the effect of this basic income model using register-based data. Our main objective is to estimate the effect of this basic income model on labor supply. Our secondary outcomes include earnings, income, participation in labor market programs, and health indicators.
Registration Citation
Citation
Hämäläinen, Kari, Ohto Kanninen and Jouko Verho. 2019. "Finnish Basic Income Experiment." AEA RCT Registry. December 13. https://doi.org/10.1257/rct.2095-4.0.
Former Citation
Hämäläinen, Kari et al. 2019. "Finnish Basic Income Experiment." AEA RCT Registry. December 13. http://www.socialscienceregistry.org/trials/2095/history/58731.
Sponsors & Partners

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Experimental Details
Interventions
Intervention(s)
The treatment group receives the unconditional basic income for two years. The basic income is a monthly benefit of 560 euros that is not affected by the level of employment. The basic income replaces minimum unemployment benefits and it is paid together with other social benefits. As the income tax schedule remains unaffected, the monetary incentives to work increase strongly. Participation in the experiment is mandatory and governed by a law.
Intervention Start Date
2017-01-01
Intervention End Date
2018-12-31
Primary Outcomes
Primary Outcomes (end points)
Days in employment
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Annual earnings and income
Take-up of social benefits
Participation in labor market programs and education
Health indicators
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
The target population of the experiment consists of individuals who are 25 - 58 years of age and received the minimum unemployment benefits in November 2016. The Social Insurance Institution of Finland randomized 2,000 individuals into treatment group in December 2017. The rest of the individuals in the target population can be used as a control group.
The follow-up of the experiment will be based on administrative register data. Different registers provide a large set of background characteristics and various outcome variables. Register data are complemented by a survey carried out in October 2018.
Experimental Design Details
Randomization Method
Simple Random Sampling done by The Social Insurance Institution of Finland (Kela)
Randomization Unit
Unemployed individual
Was the treatment clustered?
No
Experiment Characteristics
Sample size: planned number of clusters
No clusters, simple random sampling
Sample size: planned number of observations
The target population includes over 100,000 unemployed individuals.
Sample size (or number of clusters) by treatment arms
The treatment group includes 2,000 individuals receiving basic income.
The control group is defined based on register data and the number of individuals is very large (>100,000).
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Based on historical data on unemployed individuals from 2011 to 2013, we estimate the minimum detectable effect to be around 11% increase in employment days with 80% power and 5% significance level.
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
IRB Approval Date
IRB Approval Number
Analysis Plan
Analysis Plan Documents
Pre-analysis plan November 2018

MD5: 539a0cb13074e00dd153518ebeae3c2a

SHA1: ba41f477865f044b67fdf4514b2e1fc6f732b21d

Uploaded At: November 19, 2018

Pre-analysis plan November 2018 (updated)

MD5: ed8b6831dd6f27c7a3824fdaacb1c727

SHA1: 4ee7fc5f0bec9399f371c61f38bc178e9ffd958d

Uploaded At: December 13, 2019

Post-Trial
Post Trial Information
Study Withdrawal
Intervention
Is the intervention completed?
Yes
Intervention Completion Date
December 31, 2018, 12:00 AM +00:00
Is data collection complete?
No
Data Publication
Data Publication
Is public data available?
No

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Program Files
Program Files
Reports, Papers & Other Materials
Relevant Paper(s)
REPORTS & OTHER MATERIALS