Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/233806 
Year of Publication: 
2021
Series/Report no.: 
EconPol Working Paper No. 61
Publisher: 
ifo Institute - Leibniz Institute for Economic Research at the University of Munich, Munich
Abstract: 
This paper provides evidence that replacing minimum unemployment benefts with a basic income of equal size has minor employment effects at best. We examine an experiment in Finland in which 2,000 beneft recipients were randomized to receive a monthly basic income. The experiment lowered participation tax rates by 23pp for full-time employment. Despite the considerable increase in work incentives, days in employment remained statistically unchanged in the frst year of the experiment. Moreover, even though all job search requirements were waived, participation in reemployment services remained high.
Subjects: 
Employment
Field experiment
Social insurance
Unemployment benefits
JEL: 
C93
H55
I38
J65
Document Type: 
Working Paper

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