Materialien zu Wirtschaft und Gesellschaft
Against the background of persistently high long-term unemployment, job guarantees have again attracted increased attention in recent years. As a contribution to the ongoing debate, this study uses the EUROMOD microsimulation model to calculate the net costs of a job guarantee for the long-term unemployed in Austria and the effect of such a guarantee on poverty and inequality.
Depending on the amount of the gross wage paid in the guarantee (€1,500 or €1,700) and the assumed probability of participants transitioning into employment, the net monthly cost per person ranges from €451 to €703. At a gross wage of €1,500 (€1,700) and a transition probability of 16 %, the job guarantee would reduce the number of people at risk of poverty by 77,100 (89,600) and reduce income inequality.
From a societal perspective, the guarantee would particularly help groups of people strongly affected by long-term unemployment (men and older people). From an individual perspective, women, young people, families and multi-person households without children, as well as people with tertiary education would benefit most since their difference between the amount of replacement benefits and the wage of the job guarantee is especially large. The results suggest that a job guarantee for long-term unemployed can make an important and cost-effective contribution to promoting social participation and reducing poverty and inequality.
