This site is fictional demo content. It is not real news or affiliated with any real organization. Do not treat it as fact or professional advice.

NextPaper Logo
nextpaper.ccCYBER CHRONICLE
RSS
EN中文

Full article

FULL TEXT

View this issue
Deep diveSOCIETY

Three-Year UBI Experiment Report Published: Finland and Kenya Data Reveals Universal Basic Income's Real Effects

Finland and Kenya's large-scale UBI experiments completed three-year follow-up reports. Data shows UBI significantly improved recipients' mental health and entrepreneurship rates, with limited impact on overall employment.

Three-Year UBI Experiment Report Published: Finland and Kenya Data Reveals Universal Basic Income's Real Effects

On March 1, 2028, Finland's Social Insurance Institution (Kela) and US nonprofit GiveDirectly published three-year follow-up reports from their Universal Basic Income (UBI) experiments. These two studies are the world's largest empirical UBI research, providing critical data for policymakers worldwide.

Finland Experiment

Finland's UBI experiment launched in 2025, randomly selecting 20,000 unemployed citizens to receive 1,200 euros per month unconditionally for three years. Key findings from the three-year data include:

Mental health: UBI recipients' depression and anxiety scores dropped 41% compared to the control group, and demand for psychological counseling decreased 28%. Kela researchers said: 'UBI's greatest effect isn't in economic indicators, but in eliminating survival anxiety — people no longer worry about basic living needs.'

Entrepreneurship: 8.7% of UBI recipients started new businesses, 2.7 times the control group rate of 3.2%. Recipients said the stable income reduced entrepreneurial risk, making them willing to try.

However, UBI recipients' overall employment rate (56.3%) was only slightly higher than the control group (53.1%), a statistically insignificant difference. This result drew criticism from UBI opponents who argue it reduces work incentives.

Finland's Finance Minister responded: 'The employment difference may not be significant, but the improvements in entrepreneurship and mental health indicators are real. UBI isn't a cure-all, but it genuinely improves quality of life.'

Kenya Experiment

GiveDirectly's UBI experiment in rural Kenya covered 20,000 residents, each receiving approximately $50 monthly (equivalent to 50% of local median income at purchasing power parity). Three-year data:

  • Per-capita food consumption in recipient families increased 32%
  • Child enrollment rates increased 18%
  • Number of small businesses increased 45%
  • Recipients' community participation (volunteering, community meeting attendance) increased 27%

Notably, Kenya's experiment did not observe a 'laziness effect' — recipients' average working hours were comparable to the control group, but work types shifted from low-wage manual labor to more creative and autonomous small business operations.

Policy Implications

Both reports' shared conclusion: UBI doesn't cause mass 'lying flat' phenomena, but also doesn't significantly boost employment. Its core value lies in providing a safety net, improving mental health, and unleashing entrepreneurial potential.

The European Commission has indicated it will reference both reports to launch a pan-European UBI pilot program covering 500,000 people by 2029. The Chinese Academy of Social Sciences has also recommended small-scale UBI experiments in 3-5 Chinese cities.

However, UBI's fiscal sustainability remains the biggest obstacle. Finland's experiment costs approximately 14,400 euros per person annually. Extended to the nation's 5.5 million population, annual fiscal expenditure would reach 79.2 billion euros — about 30% of GDP. Economists suggest funding UBI through carbon taxes and AI labor taxes.