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From the Universal Welfare State to the Universal Basic Income?: A Study on the Finnish Government’s Policy Experiment of Basic Income (2017-2018)

  • Journal of the Scandinavian Society of Korea
  • Abbr : JSSK
  • 2020, (26), pp.1-45
  • Publisher : The Scandinavian Society of Korea
  • Research Area : Social Science > Area Studies > North Europe(Scandinavian)
  • Received : December 4, 2020
  • Accepted : December 30, 2020
  • Published : December 31, 2020

Seo Hyeon Su 1 Choi,Hansoo 2

1한국교원대학교
2경북대학교

Accredited

ABSTRACT

This article aims to provide a systemic analysis on the Finnish government’s basic income (BI) project (2017-2018), the first BI experiment at the nation-state level. To this end, it studies (1) its historical-political contexts, (2) design and implementation process, (3) final results and their implications, and (4) the future prospect of institutionalizing BI in Finland. The case is important in that Finland is the only Nordic welfare state having continuously debated the feasibility of BI ideas, with various policy proposals presented by different political parties; it was a government-driven social innovations experiment to explore a sustainable future of the universal welfare state. However, revealing contradicting elements such as expanding universalism while introducing new sanctions on the unemployed, the project initiated by the then-PM Juha Sipilä (Centre Party) showed limitations in its design and implementing process. The Activation Model is particularly criticized to have affected the final results. Despite general improvements in economic and subjective well-being indicators, impacts on employment rates remained lower than aimed. A significant problem is that it can hardly be discernable how two different mechanisms affected employment rates’ change. Along with obscure results, the future prospect of BI institutionalization in Finland seems to be uncertain. Simultaneously, there remains a possibility for the Finnish government to launch another experiment of basic income (NIT-format) in near future.

Citation status

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