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Removing Welfare Traps: Employment Responses in the Finnish Basic Income Experiment

Jouko Verho; Kari Hämäläinen; Ohto Kanninen · American Economic Journal: Economic Policy 14(1): 501–522 · 2022

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Type: Article
Author: Jouko Verho; Kari Hämäläinen; Ohto Kanninen
Identifier: DOI 10.1257/pol.20200143
Accessed: 2026-09-01

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EstablishedIn Finland's 2017–2018 experiment, replacing minimum unemployment benefits with an unconditional basic income lowered participation tax rates on full-time work by 23 percentage points, yet days in employment were statistically unchanged in the first year.