Meeting of the Minds, an organization that aims to identify and raise the profile of practical innovations in the field of urban sustainability, has published an article explaining the motivation for the Finnish basic income experiment, initiated earlier this month, co-written by one of its designers.
The “stick” mentioned in the article’s title refers to the sanctions claimants face under existing workfare policies, while the “carrot” refers to the fact that the basic income will continue to be paid to study participants even if they take up work or gain income through entrepreneurial endeavours.
The authors explain that the experiment “is designed to reform the Finnish social security system to better correspond to changes in modern working life, to make social security more participatory and diminish work-disincentives, and to reduce bureaucracy and simplify the overly complex benefit system.”
The article is written by Olli Kangas and Heikki Hiilamo. Kangas is Director of Government and Community Relations for Kela, the Social Insurance Institution of Finland, and one of the designers of the basic income trial administered by that organization. Hiilamo is a professor of social policy at the University of Helsinki and Kjell Nordstokke Professor at the VID Specialized University in Oslo.
Read the full article here:
Olli Kangas and Heikki Hiilamo, “Universal Basic Income: Does the Carrot Work Better than the Stick?”, Meeting of the Minds, January 25, 2017.
Reviewed by Dawn Howard
Photo: Sibelius Monument, Helsinki. CC BY 2.0 Dennis Jarvis