The European Centre for Social Welfare Policy and Research supports the Sustainable Development Goals
The aim of the project was to estimate public net costs and distributional effects of a job guarantee for long-term unemployed in Austria in 2021, specifically:
The analysis was based on the tax-benefit microsimulation model EUROMOD/SORESI.
The results of this study suggest that the costs of a job guarantee for the long-term unemployed in Austria are very low. At a salary of € 1,500 per month, the net cost is only € 568 per person. Even at higher salaries a considerable part of the gross expenses flows back to the state as tax revenue or social security contributions. The self-financing ratio in our standard model is 69.6%.
A job guarantee would significantly reduce the at-risk-of-poverty rate in Austria. It primarily benefits the two lowest income quintiles and thus reduces inequality. In general, more men than women benefit from a job guarantee, as men are more often affected by long-term unemployment. Looking at participants' income gains, we find that they are highest for women, families and multi-person households without children, youth, and individuals with university degrees, as these groups receive less state support while unemployed.
The European Centre for Social Welfare Policy and Research supports the Sustainable Development Goals