January 4, 2017 5:34 AM

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Finland introduces basic income for unemployed

Finland has become the first country in the world to pay a basic income to randomly picked citizens on a national level. The experiment, aimed at dismissing poverty, motivating people to join work force and decreasing unemployment, is conducted with 2,000 randomly picked unemployed participants between the ages of 25 and 58. For two years, participants from different parts of the country will receive an unconditional monthly tax-free basic income of 560 euros. The website of the Social Insurance Institution or Kela, which manages the project, said the plan aims to find ways to reshape the social security system in response to changes in the labour market. It also seeks to reduce the bureaucracy and simplify the complicated benefits system. The scheme, which was launched on the 1st of this month, hopes to create an incentive for more Finns to work, since the fear of losing welfare benefits make many citizens act picky about the job they would accept.

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