Insights
Odgers Berndtson: Can Finland's New UBI Model Succeed?
In this article, Odgers Berndtson discusses a new social provision model Finland is testing: the unconditional basic income (UBI). Citing the growing trend of atypical work arrangements and the fact that their social security system was designed during a different economic and cultural time, UBI will provide 2,000 people between the ages of 25 and 58 with a tax-free monthly basic income of €560 (about $600 USD or £475) for two years. The idea behind this model is to allow those receiving this monthly payment to be more flexible in which jobs they can accept, taking the pressure off of losing benefits. Finland is hoping this social provision method will increase employment, particularly because the amount allotted does not reduce no matter how much other income the participants earn.
The article looks at the likelihood of the success of UBI in Finland, as well as exploring similar models of receiving state benefits in other countries.