Study Finds Child Poverty Costs German Treasury Hundreds of Thousands Per Child
A UNICEF-commissioned study shows that children growing up in poverty reduce future tax contributions by several hundred thousand euros, imposing a fiscal burden on the state.
A new study ordered by UNICEF and authored by Axel Plünnecke of the Institut der deutschen Wirtschaft quantifies the long-term fiscal impact of child poverty in Germany. Children raised under adverse conditions are projected to contribute significantly less to public coffers, with the gap ranging from a positive €943,000 for those attaining university degrees to a negative €-377,100 for those lacking any vocational qualification.
Health factors matter as well: regular consumption of fruits and vegetables and regular sport can add more than €130,000 to state revenues, whereas chronic mental health issues such as depression may generate a fiscal loss of up to €-345,500. The report notes that over one million children currently face material hardship, and about 65,000 leave school without a qualification each year. UNICEF Germany’s chair, Georg Graf Waldersee, urges a shift from viewing child-related spending as a cost to seeing it as a strategic investment for future economic stability.
Why it matters
Child poverty directly reduces future tax revenue, affecting Germany's fiscal sustainability and social welfare budgeting.
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