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Universal basic income makes people happier
AGerman study has found that universal basic income improves people’s mental health without having a significant impact on their work ethic.
The pilot study, which was carried out by German association Mein Grundeinkommen and presented in Berlin on Wednesday, surveyed a total of 107 participants aged 21 to 40 living alone and earning a net income between 1,100 and 2,600 euros for three years.
As part of the experiment, they each received 1,200 euros a month for three years.
Universal basic income is a system that sees governments paying every citizen of a country a base salary to cover costs including food and rent, with the guaranteed sum being paid by the state to everyone, regardless of wealth or work status.
Despite common criticism that universal basic income discourages people from working, researchers observed no significant changed in employment.
However, more participants changed jobs during the first 18 months, while several opted to pursue further education or begin university studies, possibly because they felt they had the financial freedom to try new things.
Researchers, who collaborated with the Herman Institute for Economic Research (DIW Berlin), also found that their overall wellbeing and mental health improved significantly.
This was due to the fact that several participants reported higher levels of satisfaction with their health and a stronger sense of financial security.
Many also reported getting better sleep and having lower stress levels.
The study also found that spending patterns shifted, with Mein Grundeinkommen reporting that at the start of the study, ‘recipients often fulfilled long-held wishes’ but later, ‘many began to save and invest’.
Recipients were also found to be more generous, with many found to have donated more money, while others offered financial support to friends and family.
The study comes as figures as diverse as Jeremy Corbyn, Elon Musk and the Pope have made the case of universal basic income in recent years.
But critics have long maintained that the system is not affordable, but also a strong disincentive to work.