NEWS: 'Simulation of an application of the Hartz-IV reform in Austria' published in 'Public Sector Economics' 4/2017

DATE

14/12/2017

The research paper 'Simulation of an application of the Hartz-IV reform in Austria' by Michael Fuchs, Katarina Hollan and Katrin Gasior, presented at the conference 'Social Protection Policies and Microsimulation' hosted by the Institute of Public Finances in Zagreb, 12-13 June 2017, was now published in 'Public Sector Economics' 4/2017. The 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.