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Design and Evaluation of the Finnish Basic Income Experiment

Kari Hämäläinen and Jouko Verho

No 9875, CESifo Working Paper Series from CESifo

Abstract: The Finnish basic income experiment was an ambitious effort to study basic income in a Nordic welfare state. This paper describes the planning, implementation and scientific evaluation of the experiment. The randomized treatment group was paid a guaranteed monthly income, which had no impact on disposable income while a person was unemployed but provided a substantial increase in work incentives. We extend previous evaluations by examining the heterogeneity of incentive changes and employment responses across households. Our results reveal improvements in employment only for couples with children, providing an interesting contrast to other in-work credit programs.

Keywords: employment; field experiment; social insurance; unemployment benefits (search for similar items in EconPapers)
JEL-codes: C93 H55 I38 J65 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-exp and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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