Finland Tries Paying Its Unemployed a Basic Income

(NEWSER) – Finland is the first country in Europe to pay its unemployed citizens a basic monthly income, amounting to $587, in a unique social experiment that aims to cut government red tape, reduce poverty, and boost employment. Olli Kangas from KELA, the government agency responsible for social benefits, said Monday that the two-year trial with 2,000 randomly picked citizens who receive unemployment benefits kicked off Sunday. Those chosen will have no reporting requirements on how they spend it, reports the AP, and the amount will be deducted from any benefits they already receive. The average private sector income in Finland is $3,640 per month, per official data.

Kangas said the scheme’s idea is to abolish the “disincentive problem” in which people fear “losing out (on) something” by getting a job, he said, adding that those selected would receive the $587 even after becoming employed. A jobless person may currently refuse a low-income or short-term job in the fear of having his financial benefits reduced drastically under Finland’s generous but complex social security system. “It’s highly interesting to see how it makes people behave,” Kangas said. “Will this lead them to boldly experiment with different kinds of jobs? Or, as some critics claim, make them lazier with the knowledge of getting a basic income without doing anything?” The unemployment rate of Finland, a nation of 5.5 million, stood at 8.1% in November with some 213,000 people without a job—unchanged from the previous year... see more

source: newser.com

You may be interested

Common Networking Mistakes to Avoid
Business
0 shares18 views
Business
0 shares18 views

Common Networking Mistakes to Avoid

Kevin Faber - Apr 25, 2017

Whether you want to find a new job, advance in your career or pitch your business, networking is the way…

6 Digital Marketing Strategies That Can Help Grow Your Business!
Technology
0 shares23 views
Technology
0 shares23 views

6 Digital Marketing Strategies That Can Help Grow Your Business!

Newsmaster - Apr 25, 2017

Digital Marketing is an essential part of today’s marketing world where there are numerous businesses trying to increase the customer…

Woman smashes US astronaut record and eagerly looks for the flight to Mars
NISA
0 shares27 views
NISA
0 shares27 views

Woman smashes US astronaut record and eagerly looks for the flight to Mars

Newsmaster - Apr 24, 2017

Astronaut Peggy Whitson broke the US record Monday for most time in space and talked up Mars during a congratulatory…

21