Social reform microsimulation Austria

Sozialreform-Mikrosimulation

SORESI

PROJECT CO-ORDINATOR

Michael Fuchs

PROJECT TEAM AT THE EUROPEAN CENTRE

Katrin Gasior, Katarina Hollan

PROJECT PARTNERS

BRZ (Austria)

BACKGROUND

What is SORESI?
SORESI is a web application for Austria, based on the microsimulation model EUROMOD. The aim is to develop a web based tool for policy makers and the broader public to simulate policy reforms and to analyse their social impact, namely the effects on the national poverty rate, income inequality indicators and different income groups.

What would you do if you became the minister of finance or social affairs?

  • Would you implement a flat-tax model?
  • Would you increase family benefits?
  • Would you change employer’s social insurance contributions?


SORESI offers the opportunity to play around with such ideas and to see their effects on the national poverty rate, income inequality indicators and different income groups. For an example please view the Policy Brief “Social Reform Microsimulation (SORESI)”.

In 2014, a new web interface was released which includes different output levels (equivalised household incomes, individual incomes and a tool for model households). In 2017/18, SORESI was updated to 2018 policy rules (incl. the increase of family allowance) using the latest input data (SILC 2016 with incomes for 2015).

FINDINGS

Simulation work carried out in 2017/18:

Simulations of planned government reforms with EUROMOD/SORESI: Following published reform details for tax-benefit policies for the period 2017-2022 by the new Austrian Federal Government, we analyse the distributional impact of two envisaged/planned tax-benefit reforms: the introduction of the family bonus and the changes in relation to unemployment assistance and minimum income benefit. With our expertise in tax-/benefit microsimulation modelling, using the Austrian EUROMOD module and the SORESI model, we seek to provide an in-depth analysis of the budgetary and distributional consequences of the reforms. We look at the effect of the policy changes both at the household (incl. at-risk-of poverty rates) and individual level. The project is financed by the Vienna Chamber of Labour.

Simulation of an introduction of a basic security for children in Austria: monetary benefits for children should be related more to the material situation of the household and the (lacking) financial resources for children. While the hitherto support level for all children is maintained almost in its full entirety, in particular families with low incomes and with socials disadvantages should profit by the reform. For the analysis the tax-/benefit microsimulation model EUROMOD/SORESI for the year 2018 is used based on EU-SILC 2016 data provided by Statistics Austria. The project is financed by Volkshilfe Österreich.

SORESI

PROJECT DURATION

2012/09 – 2018/02

FUNDED BY

Austrian Ministry of Labour, Social Affairs, Health and Consumer Protection