Germany gets a new universal basic income experiment as more countries consider cash handouts amid the pandemic

• Starting this week, 120 Germans will receive approximately $1,400 every month for three years as part of a study on universal basic income by the German Institute for Economic Research.
• Universal basic income is a policy that guarantees a minimum income for citizens or residents, usually paid in the form of cash handouts by the government.
• Interim universal basic income policies have already been implemented in a number of other countries, including in the US, Spain, and Denmark.

A group of researchers in Germany is launching an experiment into the impact of universal basic income, a policy that guarantees a minimum income for citizens or residents, usually paid in the form of cash handouts by the government.

This week, the German Institute for Economic Research is beginning a three-year study into the economic policy, The Times of London reported Wednesday. As part of the study, 120 people will receive €1,200 (about $1,430) each month. Researchers will then compare their experiences with another group of 1,380 people who will not receive the payments, Business Insider's Adam Payne reported.

Other countries have started similar conversations, or have already implemented some sort of universal basic income amid the pandemic.

In early May, Scotland First Minister Nicola Sturgeon, who leads the government's cabinet, said "the time has come" to seriously consider universal basic income, a policy that guarantees a minimum income for every citizen in the form of cash handouts from the government, The Times in the UK reports.

Sturgeon said there will be "constructive discussions" with the UK government on the matter. Ultimately, it is the UK government's decision whether to create a national plan.

In the US, Congress passed the CARES Act, which included a one-time check of up to $1,200 dollars for Americans who qualify under the stimulus package. However, some lawmakers say that didn't go far enough. Recently, House Democrats introduced the Emergency Money for the People Act, which would give $2,000 a month for at least six months to Americans over the age of 16 who make less than $130,000 a year.

In Spain, the government is planning to pay a basic monthly income to about a million of the country's poorest households, Reuters reported. Nadia Calviño, the country's minister for economic affairs, had previously told the Spanish broadcaster laSexta that the government hopes universal basic income will become "a permanent instrument," Business Insider reported.

Other countries are adopting similar measures in the form of interim or emergency universal basic incomes. For example, France is offering self-employed workers up to $1,600. In Hong Kong, the government will pay 50% of workers' salaries for six months, and Denmark will pay 75% to 90% of workers' salaries on behalf of employers, as long as workers aren't laid off, Business Insider reported.