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Journal Article

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

Authors

Publication date

Dec 2017

Summary

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.

Published in

Public Sector Economics

Volume and page numbers

41 , 479 -500

DOI

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

ISSN

16

Subjects

Labour Market, Unemployment, Economics, Public Policy, Welfare Benefits, Income Dynamics, and Microsimulation

Notes

Open Access; This is an Open Access article distributed under a a Creative Commons Attribution-NonCommercial 4.0 International License (CC-BY-NC) which permits non commercial use and redistribution, as long as you give appropriate credit, provide a link to the license, and indicate if changes were made.

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