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Registration

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Last Published December 13, 2019 06:44 AM March 30, 2022 10:45 AM
Is there a restricted access data set available on request? No
Restricted Data Contact (Details not yet released by Kela)
Program Files No
Keyword(s) Labor, Welfare Labor, Welfare
Building on Existing Work No
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External Links

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External Link Description Information about the experiment for the participants provided by the Social Insurance Institution of Finland Information about the experiment for the participants provided by the Social Insurance Institution of Finland
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Papers

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Paper Abstract This paper provides evidence that replacing minimum unemployment benefits with a basic income of equal size has minor employment effects at best. We examine an experiment in Finland in which 2,000 benefit recipients were randomized to receive a monthly basic income. The experiment lowered participation tax rates by 23 percentage points for full-time employment. Despite the considerable increase in work incentives, days in employment remained statistically unchanged in the first year of the experiment. Moreover, even though all job search requirements were waived, participation in reemployment services remained high.
Paper Citation Verho, Jouko, Kari Hämäläinen, and Ohto Kanninen. 2022. "Removing Welfare Traps: Employment Responses in the Finnish Basic Income Experiment." American Economic Journal: Economic Policy, 14 (1): 501-22.
Paper URL https://doi.org/10.1257/pol.20200143
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Partners

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Public No Yes
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