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Social Investment Growth, Employment and Financial Sustainability Economic and Fiscal Effects of Improving Childcare in Austria

Investiver Sozialstaat Wachstum, Beschäftigung und finanzielle Nachhaltigkeit Volkswirtschaftliche und fiskalische Effekte des Ausbaus der Kinderbetreuung in Österreich

This article illustrates the positive effects of investments in social services using the example of childcare. The new model calculations show that these could, not only have considerable employment effects – depending on overall economic development –, but also make substantial additional revenues for public funds possible. Even in the case of relatively pessimistic assumptions about growth of the economy and employment the costs of more and improved childcare will at least be neutralized by the additional revenues (more taxes and contributions and savings in unemployment benefits). 


Austrian Federal Chamber of Labour