Fiscal Analysis
What Labour Market Exclusion Costs the State
The direct fiscal burden of keeping people outside the labour market — benefit expenditure, lost tax revenue, and the structural cost to public finances across Europe.
Country Comparison
Incapacity benefit spending per OECD Social Expenditure Database
| Country | Benefit Expenditure (% of GDP) ↓ | Estimated lost tax revenue (bn EUR) | Total estimated fiscal cost (bn EUR) | Per adult (€) |
|---|---|---|---|---|
| 🇳🇴Norway | 3.4% | €8.7bn est. | €26.1bn | €5,327 |
| 🇩🇰Denmark | 2.5% | €3.5bn est. | €13.5bn | €2,364 |
| 🇩🇪Germany | 2.3% | €22.0bn est. | €117.0bn | €2,214 |
| 🇳🇱Netherlands | 1.8% | €6.0bn est. | €25.0bn | €2,083 |
| 🇸🇪Sweden | 1.5% | €4.5bn est. | €13.3bn | €1,767 |
🇳🇴Country Profile
Norway
€26.1bnTotal estimated fiscal cost
Benefit Expenditure: 3.4% % of GDP
🇩🇰Country Profile
Denmark
€13.5bnTotal estimated fiscal cost
Benefit Expenditure: 2.5% % of GDP
🇩🇪Country Profile
Germany
€117.0bnTotal estimated fiscal cost
Benefit Expenditure: 2.3% % of GDP
🇳🇱Country Profile
Netherlands
€25.0bnTotal estimated fiscal cost
Benefit Expenditure: 1.8% % of GDP
Methodology
Every figure in InkludX's Economics research is traceable to a public source. This page explains our definitions, formulas, and editorial standards.
Read full report →Labour Exclusion
True labour market exclusion across Europe — beyond the headline unemployment rate
Labour Exclusion →