The Finnish experiment: universal basic income for unemployed

Economy Adina Camarasu
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Finland is the first country in the world that will test the universal basic income for the unemployed.

A group of 2,000 unemployed people will receive every month an unconditional basic income, writes Deutsche Welle.

Those who proposed this idea hope that such a scheme will motivate people to start looking for a job.

Starting January 2017, 2,000 unemployed will receive € 560 per month.

‘We think it will be an effective incentive for hiring or, at least, getting involved in a part-time job’, says Marjukka Turunen, head of Social Insurance Institution (Kela), the authority that will administrate the program.

Those who are offered money will not pay taxes on this income, even if they find work and receive a salary.

Turunen explained that many people who are receiving social benefits in Finland do not accept low-wage jobs because they fear that after paying the taxes it will be more difficult than the times they enjoyed government support.

The participants will be chosen randomly from a group of people aged 25-58 years who were receiving unemployment benefits in November 2016.

The idea is not new and it’s having both supporters and critics. The unemployed will not have to demonstrate that they are searching for a job and the money will be given regardless of other incomes the person has.

Finnish authorities hoped that the initiative will improve the quality of life, reduce unemployment and create new jobs, writes The Independent.

‘The experiment will be conducted in 2017 and 2018 and its purpose is to show whether the basic income can be used to reform the social security’, stated a Finnish press release.