How Germany’s UBI Experiment Works
Imagine having your name pulled from a pool of two million applicants, and being told you’ll get €1,200 every month for three years, no questions asked. That’s exactly what happened to these 122 individuals, chosen entirely at random as part of a major UBI study in Germany. The goal? To move away from endless theoretical debates and stereotypes about basic income by seeing—once and for all—what happens when real people receive unconditional cash every month, on top of any salary they already earn.
The payouts, funded by donations from a staggering 181,000 contributors, allow recipients to experience life a notch above the national poverty line. The research, led by the German Institute for Economic Research (Deutsches Institut für Wirtschaftsforschung, DIW), set the amount at €1,200, just above Germany’s poverty threshold. (For comparison, the equivalent in France is about €1,015.)
Not Just for the Needy: Who Gets the Money?
This isn’t Germany’s first UBI rodeo. Back in 2017, a similar (but smaller) test run saw 85 low-income people receive €1,000 a month for a year. This time, though, there are no income requirements or hoops to jump through. The only condition? Be between 21 and 40 and live alone—beyond that, it’s pure luck.
Recipients don’t need to quit their jobs or fulfill any obligations; they can work, chill, or bicycle around Europe—money’s in the account either way. Berlin-based non-profit Meinmindesteinkommen (“my minimum income”), headed by project initiator Steven Strehl, oversees the initiative and the rigorous scientific follow-up.
Elisabeth’s Story: “I feel like I won the lottery”
France 3 Grand-Est caught up with Elisabeth, one of the winners from Baden-Württemberg (a state right next to Alsace, just over the border from France). She’s clear about the impact:
“I feel like I won the lottery,”
she admits, not hiding her delight. Every month since July 2021, €1,200 is transferred to her account—on top of her regular salary. This will go on for three years. Has it changed her life? You bet.
She told the researchers analyzing participant stress levels and well-being:
“I’ve noticed I sleep better—I’m getting full nights, much more peacefully.”
As part of the experiment, all participants check in with the scientists three times: once at the beginning, once halfway through, and once at the end, to report on their mental health and household changes.
While Elisabeth has always been thrifty, she’s now allowed herself a few treats.
“I finally bought myself the bike I’d been dreaming about for over a year, and I was also able to make a significant donation to a women’s aid charity. It really meant a lot to me, and thanks to this regular income, I could make a real difference.”
Travel has also become a tempting prospect—she’s eyeing a trip to Asia—but stays grounded about the future:
“I know this ends in three years, so I’m saving most of what I receive.”
Beyond Theory: What Will the Study Reveal?
According to Jürgen Schupp, DIW’s scientific lead on the project, the aim is straightforward:
“Over the next three years, we want to empirically observe whether—and how—a regular, unconditional payment covering more than subsistence needs affects people’s behaviour.”
The results, backed by hard data and lived experience, are due to be handed over to the German government in 2024. The hope is to help authorities decide between a fixed universal basic income, like the €1,200 a month handed out in this study, or a minimum income threshold ensuring no German falls below a certain line.
So, as the participants’ stories unfold and savings accounts expand, one thing’s for sure: winning this lottery isn’t just about money—it’s about rethinking the future of work, welfare, and maybe, the art of a restful night’s sleep.
