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

Author

Listed:
  • 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

    (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.

Suggested Citation

  • Michael Fuchs & Katarina Hollan & Katrin Gasior, 2017. "Simulation of an application of the Hartz-IV reform in Austria," Public Sector Economics, Institute of Public Finance, vol. 41(4), pages 479-500.
    • Handle: RePEc:ipf:psejou:v:41:y:2017:i:4:p:479-500
    DOI: 10.3326/pse.41.4.4
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    References listed on IDEAS

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    1. Michael Bräuninger & Jochen Michaelis & Madlen Sode, 2013. "10 Jahre Hartz-Reformen," MAGKS Papers on Economics 201318, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Jacobi, Lena & Kluve, Jochen, 2006. "Before and After the Hartz Reforms: The Performance of Active Labour Market Policy in Germany," RWI Discussion Papers 41, RWI - Leibniz-Institut für Wirtschaftsforschung.
    3. Virginia Hernanz & Franck Malherbet & Michele Pellizzari, 2004. "Take-Up of Welfare Benefits in OECD Countries: A Review of the Evidence," OECD Social, Employment and Migration Working Papers 17, OECD Publishing.
    4. Holly Sutherland & Francesco Figari, 2013. "EUROMOD: the European Union tax-benefit microsimulation model," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 4-26.
    5. repec:zbw:rwidps:0041 is not listed on IDEAS
    6. Julia Bock-Schappelwein & Stefan Fuchs & Ulrike Huemer & Helmut Mahringer & Regina Konle-Seidl & Thomas Rhein, 2014. "Aktive und passive Arbeitsmarktpolitik in Österreich und Deutschland. Aufkommen und Verwendung der Mittel im Vergleich," WIFO Studies, WIFO, number 47166, March.
    7. Jacobi, Lena & Kluve, Jochen, 2006. "Before and After the Hartz Reforms: The Performance of Active Labour Market Policy in Germany," IZA Discussion Papers 2100, Institute of Labor Economics (IZA).
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    Cited by:

    1. Giovanni Gallo, 2021. "Regional Support for the National Government: Joint Effects of Minimum Income Schemes in Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(1), pages 149-185, March.

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    More about this item

    Keywords

    social assistance; public expenditure; household income; Austria; microsimulation;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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