OTTAWA (Reuters) - Canada's province of Ontario said on Monday it will offer a basic wage to those who are out of work or have low incomes, the latest region to experiment with providing a guaranteed income amid worries that advances in technology are leaving workers behind.
The idea of a basic income, where governments give money to cover basic living costs, has been attempted in other parts of the world recently. This year, Finland began mailing out basic income checks, while cities in the Netherlands are exploring similar programs.
The scheme is meant to provide incentive for workers to accept a lower income or part-time work without fear of losing benefits, and to provide relief to workers who are unable to make ends meet.
In Ontario, Canada's most populous province, up to 4,000 people between the ages of 18 to 64 will be able to participate in the three-year pilot project, though a control group will not receive payments.
The provincial government will pay up to C$16,989 (£9,826) a year to a low-income single person, while couples will receive up to C$24,027 a year. Half of any income earned will be deducted from the payout.
The Ontario government said it wants to see if the scheme can "support vulnerable workers, improve health and education outcomes for people on low incomes, and help ensure that everyone shares in Ontario's economic growth."
Ontario is home to the country's manufacturing sector, which has shrunk over the years, taking jobs with it.
Pointing to pressures from increasing automation and uncertainty surrounding trade policy between Canada and the United States, Ontario Premiere Kathleen Wynne said the government must respond.
"We are entering a new and very different era. From technology to Trump, it is a time of greater uncertainty and change," Wynne said.
Ontarians that have lived in the cities of Hamilton, Thunder Bay or Lindsay for at least a year will be able to participate in the programme, which is expected to start in late spring. Participants will be randomly selected.
Wynne said the test study will determine whether it is something that can be adopted across the province.
Canada last experimented with basic income in the 1970s when the province of Manitoba ran a federal-provincial programme that gave guaranteed benefits to low-income households.