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

Fuchs, M and Hollan, K and Gasior, K (2017) 'Simulation of an application of the Hartz-IV reform in Austria.' Public Sector Economics, 41 (4). 479 - 500. ISSN 2459-8860

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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. © 2018, Institute of Public Finance.

Item Type: Article
Uncontrolled Keywords: social assistance, public expenditure, household income, Austria, micro- simulation
Subjects: H Social Sciences > HA Statistics
H Social Sciences > HJ Public Finance
Divisions: Faculty of Social Sciences > Institute for Social and Economic Research
Depositing User: Elements
Date Deposited: 22 Mar 2018 11:55
Last Modified: 22 Mar 2018 12:15
URI: http://repository.essex.ac.uk/id/eprint/21739

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