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Original paper

Removing Welfare Traps: Employment Responses in the Finnish Basic Income Experiment

Volume: 14, Issue: 1, Pages: 501 - 522
Published: Feb 1, 2022
Abstract
This paper provides evidence that replacing minimum unemployment benefits with a basic income of equal size has minor employment effects at best. We examine an experiment in Finland in which 2,000 benefit recipients were randomized to receive a monthly basic income. The experiment lowered participation tax rates by 23 percentage points for full-time employment. Despite the considerable increase in work incentives, days in employment remained...
Paper Details
Title
Removing Welfare Traps: Employment Responses in the Finnish Basic Income Experiment
Published Date
Feb 1, 2022
Volume
14
Issue
1
Pages
501 - 522
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