The Finnish government denied media reports that their Universal Basic Income (UBI) trial did not result in a change. A pilot has been conducted by providing monthly tax-free income for 2,000 unemployed aged 25-58 for 560 euros.
Media reports say the scheme failed and will be stopped. The Finnish government, however, says the report is false and that trials will continue until late 2018.
Why Finland did this test? What are the benefits and can this really work?
Universal Basic Income is a welfare program, which all citizens receive a sum of money from the government unconditionally. The program was hailed as a progressive system and was even endorsed by billionaire Mark Zuckerberg, Elon Musk, and Richard Branson.
Trials began launching in January 2017 and 2,000 unemployed have received monthly basic earnings payments. They do not depend on whatever other income they might have.
Finland's moderate-right wing government remains focused on austerity, despite continuing to find ways to reduce the unemployment rate by 8.5 percent in the country. The program is seen as the right method to reduce unemployment.
The UBI program is considered able to overcome the concerns of workers who do not have full-time employment contracts. The program will also help improve mobility in the labor market because people will have a source of income in addition to wage jobs.
There are a number of reports that test the program failed because it proved too costly. However, the Finnish government says it is not a major issue.
"This trial runs as planned and will continue until late 2018," said Professor Olli Kangas, leader of the research team at Kela (Social Insurance Institution of Finland), cited The Independent.
The effects of the trial will not be published until late 2019 or early 2020. "The effects of trials will not be published when trials are in progress, since public discussion of the outcomes may affect the behavior of the test and control group, which will lead to results tilted, "Kangas said.
The results of the trial will compare the 2,000 unemployed groups receiving UBI with a control group of about 173 thousand people, consisting of persons included in the target population but not included in the study. One of the main objectives is to see if there is a difference in the level of work between those who receive and those who do not receive the basic income.