Preliminary communication

https://doi.org/10.3326/pse.41.4.4

Simulation of an application of the Hartz-IV reform in Austria

Michael Fuchs ; European Centre for Social Welfare Policy and Research, Wien, Austria
Katarina Hollan ; European Centre for Social Welfare Policy and Research, Wien, Austria
Katrin Gasior orcid.org/0000-0003-4342-1174 ; Institute for Social and Economic Research, University of Essex, United Kingdom

Abstract

This paper examines the application of the German Hartz-IV model in Austria. If the Hartz-IV reform were to be transferred to Austria, this would imply that instead of unemployment assistance (Notstandshilfe), the social-assistance-type minimum income benefit (Bedarfsorientierte Mindestsicherung) would be follow-up assistance after unemployment benefit expires. The analysis is carried out using the tax-benefit microsimulation models EUROMOD and SORESI based on the latest EU-SILC 2015 data for Austria. We simulate a baseline scenario according to the minimum income benefit regulations of the nine Federal States for the year 2017 and a scenario including a proxy for an asset check of capital income. In addition, following current political discussions and developments, we simulate a ceiling scenario, in which the sum of minimum standards per household is capped at EUR 1,500 per month. The direct (monetary) effects of the potential reform are analysed on three levels: fiscal implications; number of receiving households including socio-demographic characteristics; income distribution and risk of poverty.

Keywords

social assistance; public expenditure; household income; Austria; microsimulation

Hrčak ID:

190405

URI

https://hrcak.srce.hr/190405

Publication date:

12.12.2017.

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