Finland’s Basic Income Experiment – 2017

Finland’s Basic Income Experiment – 2017

Finland’s Ministry of Social Affairs and Health has issued its latest and apparently final press release outlining its long awaited Basic Income pilot project slated to begin Jan 1st, 2017.  Near the end of the first year the project will be assessed for the feasibility of a second year as well.

This project will be narrowly focused on a small, random sampling of employable adults and the ways in which a BI might improve their employment chances.  This project will not be looking at any other populations, vulnerable or otherwise, which might benefit from a BI.  However, Finland’s government sees this pilot as the beginning of a “… culture of experimentation” designed to identify and then help address the most pressing needs of their citizens in the years to come.


Photo: “Colors of Finland” CC BY-NC 2.0 Mariano Mantel

FINLAND: Basic Income experiment authorized by Parliament

FINLAND: Basic Income experiment authorized by Parliament

Kela, the Social Insurance Institution of Finland, announced on December 14 that the Finnish Parliament has passed the act authorizing an experiment of basic income. The experiment is set to begin on January 1, 2017.

Finland’s Ministry of Social Affairs and Health drafted the legislative proposal for the experiment in August, and submitted the proposal to Parliament after hearing public opinions on the draft proposal. The proposal elicited some controversy, in part due to the relatively small size of the basic income (560 EUR) as well as the choice of sample population, which will consist only of recipients of the country’s unemployment benefits. However, the basic design of the experiment remains unchanged: a random sample of 2,000 individuals, drawn from current working-age beneficiaries of unemployment benefits, will receive an unconditional basic income of 560 EUR per month for a two-year period. (Brief responses to the objections are included in the most recent version of Kela’s report on the experiment.)

The primary objective of the experiment is to assess whether an unconditional basic income promotes employment. Experimenters will compare the employment rate among basic income recipients to that within a control group of individuals who continue to receive traditional unemployment benefits. As Kela’s website states, the Finnish government is interested in basic income due to its potential to “reduce the amount of work involved in seeking financial assistance” and “free up time and resources for other activities such as working or seeking employment”. The experiment will also provide data used to estimate the cost of implementing a nationwide basic income.

The 2,000 experimental subjects will be chosen by a random-sampling algorithm and contacted by the end of December. Participation is mandatory for those selected.

The first payments will be distributed to subjects on January 9, 2017. Automatic payments will continue through December 2018.

More information about the experiment is available on Kela’s newly-launched web page, Basic Income Experiment 2017–2018.

Source:

Kela (December 14, 2016) “Preparations for the basic income experiment continue


Photo (Helsinki) CC BY-NC 2.0 Jaafar Alnasser

VIDEO: Experimenting with Basic Income in Finland and the Netherlands

VIDEO: Experimenting with Basic Income in Finland and the Netherlands

Videos of the workshop “Experimenting with Basic Income: Finland and the Netherlands” are available online. Additionally, Jurgen De Wispelaere has a new blog post describing the promises and challenges of a comparative approach to basic income experiments.

As described in recent articles in Basic Income News, both Finland and the Netherlands will be launching basic income experiments early in 2017. In each case, the experiment is planned to continue for two years, the target population under investigation will be restricted to individuals currently receiving social assistance benefits, and research questions will center on the basic income’s effect on work incentives. Despite such broad similarities, however, the experiments also have notable differences — in both design and political context.

 

Workshop at Kela

To address these issues, Kela, the Social Insurance Institute of Finland, hosted a day-long workshop on “Experimenting with Basic Income: Finland and the Netherlands” on November 8. Speakers included Sjir Hoeijmakers, Loek Groot, Timo Verlaat, Ernst-Jan de Bruijn, and Ruud Muffels on the Dutch experiments, and Johanna Perkiö, Olli Kangas, and Kathrin Komp on the Finnish experiments.

Videos of all sessions are now available (click on the above embedded links).

 

YouTube player

 

Lessons and Challenges

Jurgen De Wispelaere, a research fellow at Finland’s University of Tampere, presented opening and closing comments at Kela’s workshop, respectively titled “Putting Basic Income Experiments in Context” and “Comparing Basic Income Experiments: Lessons and Challenges” (see video below).

In a recent post on Kela’s blog, De Wispelaere outlines three main reasons to engage in a comparative study of basic income experiments: the comparative approach allows researchers to pool information about issues faced in running a basic income experiment, pool knowledge about the effects of basic income, and study the political forces behind the rapid rise in popularity of basic income.

Jurgen De Wispelaere (November 14, 2016) “Comparing Basic Income Experiments: Lessons and Challenges” Kela.

 

YouTube player

 

Other Experiments

While the Kela workshop and De Wispelaere’s brief article focus specifically on the experiments in  Finland and the Netherlands, we might note that other basic income pilots and experiments are about to begin around the world. In Canada, the provincial government of Ontario plans to roll out a basic income pilot study by April 2017. The government of France is also investigating the possibility of experimenting with a basic income, although no launch date has been specified. Several privately-funded basic income pilots and experiments are also scheduled to begin in 2017, including those of the Silicon Valley firm Y Combinator (in Oakland, California) and the charities GiveDirectly (in multiple Kenyan villages) and Eight (in a Ugandan village).

 


Reviewed by Genevieve Shanahan

Photo: Kela office, CC-BY-SA-4.0 Kotivalo

HELSINKI, FINLAND: Workshop on Basic Income experiments (Nov 8)

HELSINKI, FINLAND: Workshop on Basic Income experiments (Nov 8)

As previously announced on Basic Income News (and elsewhere), the governments of Finland and the Netherlands are both preparing to experimentally test a basic income, with trials beginning as early as January 2017.

On November 8, Kela, the Social Insurance Institute of Finland, will be holding a workshop on both countries’ upcoming experiments, fittingly titled “Experimenting with Basic Income: Finland and the Netherlands”. The workshop is open to the public and will be streamed live.

The goals of the event, which brings together leading researchers on both projects, are to “explore both similarities and differences between the proposed schemes, to examine the role of basic income experiments in each country, and to analyse the political and policy processes associated with piloting basic income in advanced welfare states”.

Kela researcher Olli Kangas will introduce the event, and Jurgen De Wispelaere, of the University of Tampere, will deliver opening and closing lectures that compare and contextualize the two experiments (“Putting Basic Income Experiments in Context” and “Comparing Basic Income Experiments: Lessons and Challenges”).

Additionally, three panels will be held concerning details of the respective experiments:

1. “Experimenting with Basic Income in the Netherlands: General Considerations” featuring panelists Sjir Hoeijmakers (independent scholar) and Loek Groot (University of Utrecht), moderated by Paula Laine (Sitra).

2. “Experimental design and implementation: Utrecht, Wageningen and Tilburg” featuring panelists Timo Verlaat (University of Utrecht), Ernst-Jan de Bruijn (University of Wageningen), and Ruud Muffels (University of Tilburg), moderated by Laine.

3. “The Finnish Basic Income Experiments” featuring panelists Johanna Perkiö (University of Tampere), Olli Kangas, and Kathrin Komp (University of Helsinki), moderated by Pertti Koistinen (University of Tampere).

“Experimenting with Basic Income” takes place as part of the research program Tackling Inequalities in Time of Austerity (TITA), funded by the Strategic Research Council at the Academy of Finland. (See TITA’s research plan for more information about its activities.)

Join in-person or on-line:

To attend, register by November 4 here: https://www.lyyti.fi/reg/workshop20161108.

The event will be streamed lived and recorded. Information will be available at this link: https://www.kela.fi/experimenting-with-basic-income-finland-and-netherlands.


Reviewed by Robert Gordon.

Photo: “Helsinki y la catedral” CC BY-NC 2.0 Mariano Mantel.

FINLAND: Kela’s report on Basic Income experiments released in English

FINLAND: Kela’s report on Basic Income experiments released in English

As previously reported in Basic Income News, Kela, the Social Insurance Institution of Finland, submitted a report on basic income experiments to the Finnish Government on March 30. Previously released to the public only in Finnish, the report is now available in English. 

Kela’s report describes and analyzes several basic income models, including a “full” basic income of at least 1000 EUR per month, which would replace all existing social insurance programs, a “partial” basic income of under 800 EUR per month, and a negative income tax. It additionally examines conditional programs such as a participation income.

In the conclusion of its report, Kela advises the Finnish government to adopt a partial basic income model for its experiment.

In August, Finland’s Ministry of Social Affairs and Health drafted a bill authorizing the basic income experiment. This bill revealed that the government plans to test of a partial basic income of 560 EUR per month, distributed to a random sample of 2,000 individuals who are between the ages of 25 and 58 and currently receive unemployment assistance. The Ministry’s proposed legislation also made clear that experiment will be designed specifically to test whether a partial basic income incentivizes employment. 

The English version of Kela’s 62-page report is now available as a free download from its website (see link below). This version also includes a postscript concerning the bill drafted by the Ministry of Social Affairs and Health, including a summary of criticisms of the bill and an explanation of the government’s decision to adopt the chosen experimental design.

Kansaneläkelaitos Kela; Social Insurance Institution of Finland Kela (2016) “From idea to experiment. Report on universal basic income experiment in Finland”

Link: https://helda.helsinki.fi/handle/10138/167728

 


Photo: CC BY-NC 2.0 Aaronigma