Redirecting social spending towards young adults would be one of the most cost-effective public investments. This is the conclusion of a study by EconPol Europe, based on French data, which estimates that one euro of public support granted to young adults yields a social benefit approximately three times greater than that of one euro allocated to older workers.
For researchers, this discrepancy can be explained in particular by the effect of financial support on continuing education. By enabling young people to remain in the education system for longer, public transfers contribute to higher future incomes and, in turn, additional tax revenue. “Transfers that enable young adults to continue their studies are particularly valuable, as they are partly self-financing through higher future incomes and tax revenues,” emphasises Marion Brouard, a researcher at the ifo Institute.
The study also highlights a significant shift in poverty patterns across Europe. According to Eurostat data, nearly 24% of young adults are currently at risk of poverty in the European Union, compared with around 19% of older working-age people. This trend has become more pronounced in recent years. In France, the at-risk-of-poverty rate for young adults rose from 22% in 2015 to 25% in 2025. In Germany, it rose from 24% to 27% over the same period.
Young people facing poverty
“Poverty has shifted from older people to young people over the last few decades,” says Marion Brouard. Yet social protection systems are still struggling to adapt to this new reality. According to the study, France is a striking example of this, as the Revenu de solidarité active (RSA) remains unavailable to those under 25 – an age limit that has equivalents in several other European countries.
Consumption patterns also confirm that young adults are more financially vulnerable. When they receive an extra euro, they spend an average of 45 cents of it, compared with just 24 cents for older workers. “Young adults have to spend almost every extra euro on day-to-day expenses. This shows that they have very little financial leeway,” explains the researcher.
One of the main arguments put forward against increasing support is that families would reduce their own financial support when the state steps in. The study significantly qualifies this concern. Even if a substitution effect does exist, around 88% of public transfers ultimately do benefit young adults.
