First German long-term study on basic income

Mental health, life satisfaction, working life: the unconditional basic income (UBI) has a significantly positive effect on various areas of life. People do not work less but are more satisfied at work and mentally healthier. These are the key findings of the basic income pilot project, the largest field experiment on UBI in Germany to date and the largest civil society-initiated study on basic income worldwide.

The study focussed on working individuals between the ages of 21 and 40 with a monthly net income of 1,100 to 2,600 euros. Researchers from the German Institute for Economic Research (DIW Berlin), the Vienna University of Economics and Business (WU Vienna), the Institute for Employment Research (IAB), the University of Oxford, the Frankfurt School of Finance & Management and the University of Cologne investigated the impact of the UBI. Almost 1,700 people took part, 122 received €1,200 per month from June 2021 to May 2024. The randomised controlled study design enables reliable conclusions to be drawn about the causal effects of the basic income.

"The results contribute to the evidence-based objectification of the debate about the basic income narrative," explains Professor Jürgen Schupp, who led the study at DIW Berlin. "It would be desirable if the debate in science, politics and society were hopefully more fact-based in the future," he adds.

Janine Busch, who heads the basic income pilot project at Mein Grundeinkommen e.V., says: "At a time when people are increasingly using falsehoods in politics, facts are particularly important for a healthy democracy. The basic income pilot project provides reliable scientific data that makes evidence-based social policy possible and enriches our democratic discourse."

Work, self-determination, well-being and finances - basic income has a positive impact on various areas of life

‘"he unconditional basic income does not lead to self-imposed unemployment," says Professor Frederik Schwerter, Associate Professor of Microeconomics at the Frankfurt School of Finance & Management. "The difference in the unemployment rate between the basic income group and the comparison group is a statistical zero. However, there are clear differences in the way people deal with their own professional situation: many in the basic income group are continuing their education and are more satisfied with their working life. There was neither an increased withdrawal from the labour market nor a significant reduction in hours worked." This challenges assumptions that assume a decline in employment of up to 27 per cent and therefore also has an impact on the question of affordability.

Parallel to the long-term study, the Mein Grundeinkommen association has already developed an interactive online financing calculator in 2023 in cooperation with DIW Berlin. This shows: The basic income is affordable. The middle class would be significantly strengthened, as 83 per cent of the population would benefit financially. Nothing would change for 7 per cent of Germans. Only 10 per cent would have to contribute more. "This means that the UBI not only stabilises individuals but can also make our society and economy fit for the future," says Klara Simon, Chairwoman of Mein Grundeinkommen e.V..

A UBI significantly expands people's room for manoeuvre. The basic income group showed an increased sense of autonomy over the entire study period. Their general well-being also improved. This is reflected in better mental health, greater life satisfaction, less stress, better sleep and a more fulfilling social life. The test subjects with UBI spend almost four hours more per week socialising than those in the comparison group.

The study shows: Although the test subjects with a basic income initially fulfil long-cherished wishes, many save and invest later on. In this way, they build up long-term financial security. During the study period, the proportion of those with assets of less than 10,000 euros fell to 13 percent, compared to 27 percent in the comparison group. In addition, people with UBI share more than twice as much money with those around them or through donations than the comparison group - around 125 euros per month.

A new set of facts: now it's up to the political will

Overwork, constant stress and mental illness are among the most common reasons for sick leave. "A UBI can lead to massive savings in the health and social system. After all, mentally stable people can work more productively and innovatively," says Klara Simon. "In addition, politicians have so far failed to find answers to the increasing financial divide in our society. As a central element of a modernised social system, the UBI significantly increases equality of opportunity. It can therefore be an effective instrument against the growing social inequality in this country, which is undermining our democracy from within," Simon concludes.

In order to continue to enrich the debate with facts, the association will use its funds in future to carry out social potential analyses, research the group effects of basic income and continue to make basic income tangible through its raffle. On the upcoming Labour Day, Mein Grundeinkommen e.V. will be raffling off around half a million euros in unconditional basic income.