An experiment to inform universal basic income
Tera Allas, Jukka Maksimainen, James Manyika and Navjot Singh – McKinsey & Company
As income inequality and economic upheaval features more in society, is a guaranteed minimum income worth considering? Results from a two-year experiment in Finland offer clues about the concept of a universal basic income. Globalisation, automation, and the rise in the cost of necessities were increasing pressure on social contracts pre COVID, but now with more economic risks, new options need to be considered.
The body of quantitative evidence for or against a universal basic income (UBI) is still slim. The context and design of the first wave of policies, from 1960 to 1980 and primarily in North America, make the results hard to generalise. In the 2000s, a new wave of experiments—some funded by charities rather than governments—has sprung up. Municipalities in the Netherlands, Barcelona in Spain, the US city of Stockton, in California, the Brazilian city of Maricá, and the province of Gyeonggi in South Korea are among the places experimenting with a basic income.
However, to date Finland is the only country that has managed to complete a nationwide randomised control trial of a basic-income program. Follow the link below for the full article giving insight into this experiment and its’ results.