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Tax-benefit policies to fight poverty among young adults in Europe

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  • Vincent Vergnat

Abstract

European countries o?er a large amount of policies to protect the population against the risk of poverty and social exclusion but Young adults generally do not have access to unemployment bene?ts since their period of contribution is relatively short and in some countries they do not have access to minimum income. In times of high unemployment in Europe, is it possible for young people to access autonomy without family resources? This paper aims to compare the budgetary constraints of young adults to understand the various strategies implemented by di?erent European countries. I rely on microsimulation and hypothetical data to compare identical individuals and to isolate the e?ect of di?erent tax-bene?t systems on the budget constraint of young adults. I ?nd that European countries can be classi?ed into ?ve groups concerning the design of social assistance policies for young people. Belgium, Finland and Denmark, which consider young people as an independant household, while taking into account the situation of cohabitation, are on average more e?ective in reducing the intensity of youth poverty.

Suggested Citation

  • Vincent Vergnat, 2021. "Tax-benefit policies to fight poverty among young adults in Europe," LISER Working Paper Series 2021-09, Luxembourg Institute of Socio-Economic Research (LISER).
    • Handle: RePEc:irs:cepswp:2021-09
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Youth; Income; Microsimulation;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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