Germany faces high societal costs due to childhood deprivation

A new report by the German Institute of Economic Research (IW), commissioned by UNICEF Germany, highlights the significant economic consequences of childhood deprivation. The study defines deprivation as a lack of access to essential resources, including financial stability, educational opportunities, social participation, and healthy nutrition.

Model calculations indicate that a child growing up in deprivation contributes approximately 216,500 euros less to public budgets over their lifetime compared to a child without such disadvantages. This fiscal gap stems from the difference between state expenditures on family services, childcare, and education versus the lower tax and social security contributions made by disadvantaged individuals as adults.

In the 2024/25 school year, roughly 8.4 percent of school leavers in Germany—approximately 65,000 youths—left general education schools without at least a basic secondary school certificate. Furthermore, one in ten individuals aged 20 to 24 is currently neither in training, further education, nor employed. Experts suggest that addressing these educational and social gaps is not only a matter of upholding children's rights but is also a vital long-term investment for the national economy.