The experiment failed? Finland stopped paying the unemployed "just like that"
Finland has stopped paying an unconditional income of 560 euros to unemployed and low-income citizens, which were introduced as an experiment two years ago. Officials compared the progress of 2,000 recipients of the subsidy with a control group of poor citizens and came to sad conclusions.
The essence of the experiment
The Finnish authorities decided to conduct an experiment, which, in their opinion, was supposed to motivate the unemployed to find work, as well as to find employment in non-prestigious vacancies. Scientists of the Research Institute have formed two groups of unemployed. The control group did not receive unconditional income. Another two thousand poor Finns received a basic subsidy of 560 euros. The payment of the subsidy did not depend on the progress in employment, income growth or other indicators.
The researchers analyzed the impact of unconditional income by comparing three parameters: individual well-being, progress in employment, income level. The control group served as a kind of marker with which the results of the participants of the experiment were compared. Scientists expected that an unconditional income would motivate the unemployed to take up less prestigious, low-paid work more willingly.
Two years later
The experiment started in January 2017. For two years, the researchers compared the results of groups of unemployed. It turned out that the average progress in both groups is practically the same. The people who received subsidies showed the same progress as the control group.
Sociologists have come to the conclusion that receiving unconditional payments in no way affects the progress in employment. People from the control group who did not receive free euros earned odd jobs, as did the participants of the experiment. Contrary to expectations, the availability of unconditional payments did not help the poor to organize a permanent income, to advance on the path of employment. Therefore, in December 2018, the experiment was closed, stopping the payment of unconditional income.
The positive side
Sociologists could not help but note the positive side of the experiment. Although studies did not suggest progress in this direction, but the recipients of unconditional income demonstrated an increase in confidence in the future, a sense of well-being, security.
Due to the absence of stress, the recipients of basic income did not experience problems with concentration, showed excellent well-being. Monthly grants made it possible to look more confidently into the future, solve problems in the present, and establish contacts in society.In addition, the unconditional basic income contributed to the growth of self-esteem. The participants of the experiment stated that having a monthly income, it is easier to start your own business or to consider labor market offers more carefully. The researchers concluded that unconditional income works for the long term. Therefore, it cannot be considered as a tool for solving the issue of employment in a short time.
Summing up
Sociologists continue to study the results of the two-year experiment. The collected data will be analyzed as deeply as possible. The Research Institute plans to publish the full report of the experiment no earlier than 2020. Scientists believe that the results of the study can be useful in the development or implementation of other social projects. By the way, the Finnish government is considering a project on the introduction of negative taxes.
At the moment, the Finnish government has stopped the experiment with the payment of unconditional income to citizens. Which, of course, upset two thousand unemployed people who lost their "free" money. It is possible that the Finnish government considered the "carrot" too expensive to increase confidence. It is possible that the next step will be a "whip", motivating less to do nothing and not disdain low-paid vacancies.
Keywords: Unemployment | Social assistance | Social programs | Finland | Experiment