A new study by Econpol, which analyzed data from France, indicates that one euro of public support directed toward young adults yields roughly three times the social benefit compared to one euro allocated to working older individuals.
According to Marion Brouard, a researcher at the Ifo Institute, benefits that allow young people to remain in vocational training are particularly valuable because they can, to some extent, finance themselves later through higher incomes and tax payments. Brouard stressed that young adults are now the group with the greatest need for supplementary social support, a shift that political policy has not adequately addressed.
Data from Eurostat shows that approximately 24 percent of young adults across the European Union are at risk of poverty, compared to only about 19 percent of older working-age individuals. This gap has widened in recent years. In Germany, the risk of poverty among young adults increased from 24 percent in 2015 to 27 percent in 2025, while in France, it rose from 22 percent to 25 percent. Brouard concluded that poverty has shifted “from the older generation to the younger.” Despite this change, European welfare states have reacted slowly; France exemplifies this, as its core safety net-the “Revenu de solidarité active”-remains inaccessible to those under 25, a restrictive age limit replicated in other nations.
The study further highlighted significant financial vulnerabilities. When young adults receive additional income, they spend an average of 45 cents for every additional euro, compared to only 24 cents for older people. Brouard explained this disparity as evidence of greater financial restrictions among the younger demographic. “They have to use almost every additional euro for daily expenses,” she noted, “which shows they have almost no financial safety net.”
A long-standing concern regarding state transfers is the potential for them to merely replace private support. If the government gives a young adult 100 euros, and the parents reduce their own aid by the same amount, the individual’s situation does not improve. This ‘displacement argument’ has historically hampered calls for stronger support for young people. However, the empirical findings do not support this objection. While this effect slightly reduces the net gains of targeted support for young adults, roughly 88 percent of the state transfer money does reach them.
Public opinion in France also supports prioritizing young adults. An opinion poll revealed that respondents favored a stronger redistribution in favor of young adults over older people. Brouard ultimately stated that if governments intend to use public funds where they can achieve the highest social return, they should provide stronger financial backing to young adults.
