A landmark study from Germany has found that Universal Basic Income (UBI) not only improves mental health and overall wellbeing but also doesn’t discourage work — defying a key criticism of the idea.
What the Study Did
Organized by Mein Grundeinkommen in collaboration with DIW Berlin and other academic partners, the study followed 107 individuals aged 21–40 living alone with moderate incomes. These participants received €1,200 per month for three years — no strings attached. A control group of nearly 1,600 people was also surveyed for comparison.
Surprising Work Trends
Despite concerns that UBI would encourage people to “retreat into the social hammock,” the data showed no drop in employment, income, or working hours. Instead, many recipients used the freedom to switch jobs, enroll in education, or pursue training — suggesting a shift toward purpose-driven work choices.
“The often-discussed retreat into the social hammock did not occur,” said DIW Berlin.
Smarter Spending and Saving
Initially, recipients spent their basic income on travel and fulfilling long-held wishes. Later, they began to save and invest, with over a third of the money being saved. That’s twice as much as the control group. Participants also donated more and financially supported loved ones, signaling greater generosity and social involvement.
Uplift in Mental Health & Social Life
The most striking outcome? Improved mental health and life satisfaction. UBI recipients reported better sleep, social connections, and use of leisure time. According to psychologist Susann Fiedler, these changes were comparable to therapy or major life events like marriage or divorce.
“They didn’t change who they are — their possibilities changed,” Fiedler explained.
What It Means
The study’s results challenge conventional beliefs about welfare and work, showing that UBI empowers rather than enables dependency. It offered recipients more control over their time, reduced anxiety, and helped build stronger social ties — all while maintaining productivity.
With these findings, the conversation around UBI could be shifting from “What will people stop doing?” to “What could people finally start doing?”
