Finland’s unemployed to get $587 per month

Bloomberg

Finland has become the first country in Europe to pay its unemployed
citizens a basic monthly income, amounting to 560 euros ($587), in a unique social experiment which is hoped to cut government red tape, reduce poverty and boost employment.
Olli Kangas from the Finnish government agency KELA, which is responsible for the country’s social benefits, said Monday that the two-year trial with the 2,000 randomly picked citizens who receive unemployment benefits kicked off Jan. 1.
Those chosen will receive 560 euros every month, with no reporting requirements on how they spend it. The amount will be deducted from any benefits they already receive. The average private sector income in Finland is 3,500 euros per month, according to official data. Kangas said the scheme’s idea is to abolish the “disincentive problem” among the unemployed.
The trial aims to discourage people’s fears “of losing out something”, he said, adding that the selected persons would continue to receive the 560 euros even after receiving a job. 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?”