Finland Universal Basic Income Experiment
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
Result
Positive
Employment: +6 days/year (modest positive); well-being score: +0.09 SD; trust in institutions: significantly higher; mental health symptoms: meaningfully reduced
Evidence strength
Strong
Randomized controlled trial with large sample.
Replication status
Partially replicated
Institution
KELA (Social Insurance Institution of Finland)
Location
Finland
Year
2018
Policy area
Cash Transfers
Mechanism
Cash transfer