KELA (Social Insurance Institution of Finland) · Finland · 2018
Summary
Finland's basic income experiment was the first national-level RCT of unconditional cash for unemployed adults in a high-income country. The primary employment finding was modest but positive — treatment recipients worked slightly more, not less, than those receiving conditional benefits. The more striking effects were on well-being: treatment recipients reported better mental health, higher trust in institutions, and greater sense of security. The experiment resolved one empirical question decisively: unconditional cash did not reduce work effort among unemployed recipients. It opened others: would the effect generalize to employed populations, and at what fiscal scale?
Research question
"Does an unconditional basic income improve well-being and employment outcomes for unemployed adults compared to standard unemployment benefits?"
Methodology
Intervention
2,000 unemployed adults aged 25–58 randomly selected nationwide to receive €560/month unconditionally for 2 years, replacing existing unemployment benefits; control group received standard conditional benefits
Assignment
Randomized controlled trial (national lottery from unemployment registry)
Sample size
2,000 treatment, 173,000 control
Primary outcome
Employment days; well-being index; trust in institutions; mental health
Effect estimate
Employment: +6 days/year (modest positive); well-being score: +0.09 SD; trust in institutions: significantly higher; mental health symptoms: meaningfully reduced
Decision
Finland did not extend the program nationally but published full two-year results in 2020; findings widely cited in global UBI policy debates