Trapped in inactivity? Social assistance and labour supply in Austria

Autor: Silvia De Poli, Michael Christl
Rok vydání: 2021
Předmět:
National Economy
Volkswirtschaftstheorie
Sozialleistung
Economics
Haushaltsgröße
Geography
Planning and Development
social benefits
Microsimulation
Development
Affect (psychology)
labor supply
Social Security
social assistance
Margin (finance)
Sozialhilfe
0502 economics and business
European integration
ddc:330
050602 political science & public administration
Euromod
soziale Sicherung
Österreich
050207 economics
Social sciences
sociology
anthropology
Arbeitsangebot
reform
Discrete choice
Sozialwissenschaften
Soziologie
05 social sciences
Wirtschaft
simulation
0506 political science
EUROMOD
European Union Survey of Income and Living Conditions (EU-SILC) 2017
Programme for the International Assessment of Adult Competencies (PIAAC)
Wirtschaftspolitik
Labour supply
Austria
ddc:300
Economic Policy
Demographic economics
household size
Public finance
Zdroj: Empirica
ISSN: 1573-6911
0340-8744
DOI: 10.1007/s10663-021-09507-8
Popis: Financial incentives affect the labour supply decisions of households. However, the impact usually varies significantly across household types. Whilst there is a substantial amount of literature on the labour supply effects of tax reforms and in-work benefits, the impact of changes in social assistance benefits has received less attention. This paper analyses labour supply responses to changes in social assistance. We show that labour supply elasticities vary substantially across gender and household type. Women exhibit higher labour supply elasticities, both on the intensive and the extensive margins. Additionally, labour supply elasticities are typically higher for singles and for households with children. Using these results, we analyse the impact of the Austrian reform proposal “Neue Sozialhilfe” (New Social Assistance), which was introduced in 2019 and substantially cut social assistance benefits for migrants and families with children. The overall effects of the reform are especially strong for men and migrants. Migrants and couples with children, that is, the groups hardest hit by the reform’s social assistance reductions, show the strongest labour supply reactions to the New Social Assistance. Furthermore, we show that overall, the reform is expected to have a positive, but small, effect on the intensive margin of labour supply.
Databáze: OpenAIRE
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