Universal basic income makes people happier and does NOT make them want to leave their jobs, long-term study finds

Universal basic income improves people’s mental health without having a significant impact on their work ethic, a new study has found.

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 change 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. 

Back in 2020, former Prime Minister Boris Johnson considered implementing a universal basic income in order to avoid families being plunged into poverty as a result of Covid-19. 

But due to concerns about cost and the potential impact on the workforce, the UK government did not go ahead with the measure, arguing that it was not the most efficient way to distribute support. 

While no country has fully implemented universal basic income programmes, several have conducted pilot studies and experiments. 

Finland, for example, explored the impact of universal basic income on employment and well-being between 2017 and 2018. 

Currently in the UK, North London and North East England are trialling universal basic income. 

The experiment is being conducted by think tank Autonomy, and involves 30 individuals in East Finchley in North London and in Jarrow in North East England. 

Participants are receiving £1,600 each month.