By Matthias Pöls
The first long-term study on the unconditional basic income in Germany shows that it improves people’s happiness and mental health. Despite the financial support, recipients do not reduce their working hours more than others.
- Leipzig woman fulfilled her dream with basic income
- Participants did not reduce working hours more than others
- What consequences the introduction of an unconditional basic income could have
The unconditional basic income has a “significantly positive” effect on people. This is the conclusion of the first German long-term study, the results of which were presented on Wednesday by the association “My Basic Income.” According to the study, recipients do not work less than others, but are overall happier and mentally healthier.
Nearly 1,700 people participated in the study on the “Basic Income Pilot Project.” 122 of them received an unconditional basic income (UBI) of €1,200 per month tax-free for three years, from June 2021 to May 2024. The focus of the now published study was on employed individuals between the ages of 21 and 40 with a monthly net income of €1,100 to €2,600—the younger middle class.
Leipzig woman fulfilled her dream with basic income
Since 2014, millions of people have applied to participate in the donation-funded project – and thus receive an unconditional basic income. Romy from Leipzig’s lottery number was also drawn. Since June 2024, the 34-year-old has been receiving a so-called “utopian basic income.” This means 1,000 euros every month for a year. “I’ve fulfilled a dream with this,” says the psychologist.
This allowed her to establish a part-time freelance artist career, Romy explains. “I took a career break at the end of last year to do this.” She primarily paints with acrylic and oil paints on canvas, and her website will be online soon. Nevertheless, Romy has been able to build up a financial cushion.
Participants did not reduce working hours more than others
A frequently voiced criticism of an unconditional basic income for everyone is that it would cause people to reduce their working hours, which could lead to problems for the economy. However, the study participants did not reduce their working hours any more than other people. There was no difference in this regard between the basic income group and the comparison group, according to the association “My Basic Income.” However, the UBI recipients continued their education more often and were more satisfied with their employment situation.
It would be desirable if in the future there would be more fact-based debate in science, politics and society.Jürgen Schupp, Head of Studies
“The results contribute to an evidence-based, objective approach to the debate surrounding the basic income narrative,” explained Professor Jürgen Schupp, who led the study at the German Institute for Economic Research (DIW Berlin). “It would be desirable for debates in academia, politics, and society to be increasingly based on facts in the future,” he continued.
More peace in everyday life and greater self-confidence
“It gives you a lot of peace in your everyday life and has also boosted your self-confidence,” says Romy. She and a friend won the basic income at the same time, and both of them have made many steps forward as a result. Her friend was able to start university at 40, something that would otherwise have been much more difficult to achieve.
We didn’t have to keep a close eye on our money and whether it would be enough at the end of the month.Romy receives basic income
But there were also smaller things that made life more pleasant overall. Romy and her friend enjoy going to concerts. “That way, we didn’t have to keep a close eye on our money and whether we’d have enough at the end of the month,” Romy said. On the other hand, it wasn’t a million euros, so “you’re very conscious about using the basic income.”
First fulfill your wishes, then build up a financial cushion
According to the study, the randomly selected participants initially fulfilled long-held dreams with their basic income. However, many later saved and invested, thus building sustainable financial security.
During the study period, the proportion of those with assets of less than €10,000 reportedly fell to 13 percent, compared to 27 percent in the comparison group. In addition, those receiving a UBI shared more than twice as much money with their friends and family or through donations than the comparison group—about €125 per month.
According to the association, the participants were able to significantly expand their scope of action and improve their overall well-being. This was also reflected in reduced stress, better sleep, and a more fulfilling social life.
Regular online questionnaires formed the central component of the data collection. Participants in the study on the impact of the UBI included the DIW Berlin, the Vienna University of Economics and Business, the Institute for Employment Research, and the University of Oxford.
What consequences the introduction of an unconditional basic income could have
Klara Simon, chairwoman of “My Basic Income,” says: “A UBI can lead to massive savings in the health and social care systems. Because mentally stable people can work more productively and innovatively.” Furthermore, the UBI could increase equal opportunities in a modernized social system. “Thus, it can be an effective tool against the growing social inequality in this country, which is currently eroding our democracy from within.”
From the association’s perspective, an unconditional basic income of €1,200 per month for all citizens is affordable. This was shown by a financing calculator developed jointly with the DIW in 2023. Over 80 percent of the population would ultimately have more money, while seven percent would see nothing change, and ten percent would have to pay more.
According to “My Basic Income,” the whole thing could be financed primarily through higher income taxes, the abolition of tax privileges, and social benefits that are no longer necessary.
