Austria

   

Social Sustainability

#15
Key Findings
In the area of social sustainability, Austria falls into the middle ranks internationally (rank 15).

While tertiary attainment rates are comparatively low, the dual vocational education system is a strength. Educational inequity is a concern, and early childhood education is underdeveloped. Poverty rates are middling. Access to social housing is expected to be a problem in the future.

Healthcare in Austria is of high quality but faces challenges, including a shortage of doctors and long waiting times. People with private health insurance often receive faster or even better care. Gender inequalities persists, including a significant gender pay gap. Conservative family policies are reinforced by limited public childcare availability.

Austria’s pension system is generous, but retirement-age reforms are needed. Migrants face difficulties integrating into the labor market, and children from migrant families tend to be placed in lower-performing schools. NGOs report police violence against noncitizens.

Sustainable Education System

#15

To what extent do policies and regulations in the education system hinder or facilitate high-quality education and training?

10
 9

Education policies are fully aligned with the goal of ensuring high-quality education and training.
 8
 7
 6


Education policies are largely aligned with the goal of ensuring high-quality education and training.
 5
 4
 3


Education policies are only somewhat aligned with the goal of ensuring high-quality education and training.
 2
 1

Education policies are not at all aligned with the goal of ensuring high-quality education and training.
Policies Targeting Quality Education
8
The overall situation concerning access to high-quality education and training leaves much room for improvement; however, recent trends in this area have been promising. The percentage of people aged 25 – 34 with tertiary education has risen from 36% (men) and 41% (women) in 2015 to 39% (men) and 48% (women) in 2022. It is worth noting Austria had the highest share of short-cycle tertiary degrees as their highest attainment, which cannot be compared to “normal” tertiary programs. This points to some effects of the Bologna reform introduced at the end of the last millennium. In terms of formal years of schooling, Austria falls below European and North American averages (16.0 versus 16.7 years on average in Europe and North America; Statistik Austria 2022).

Those features must be contextualized to be fully understood: Notably, deviating significantly from the general European pattern, the earnings advantage for workers with a short-cycle tertiary degree is higher than for those with a bachelor’s or equivalent degree (OECD 2023: 97).

Regarding the share of people aged 16 to 74 who possess at least basic digital skills, Austria ranks above the European average according to recent Eurostat data for 2021, placing 8th out of 22 countries surveyed.

Furthermore, Austria’s dual vocational education system has been credited with helping graduates transition smoothly into the labor market and maintaining a low overall share of NEETs by European standards. The transition from vocational training to employment or further studies has been particularly seamless in Austria.

Austria has also stood out positively in other established parameters of high-quality education. Alongside just a few other European countries, Austria has made extensive use of teachers’ aides in schools, resulting in favorable ratios of children to contact staff compared to teaching staff. The latest PISA figures, published in late 2023, show that Austria has largely resisted the downturn trends observed across the OECD, despite a notably poorer score in mathematics compared to previous PISA assessments. Overall, the country has defended its above-average position within the OECD, ranking 13th out of 36 OECD countries in 2023.

Citations:
OECD. 2023. “Education at a Glance.” https://www.oecd.org/education/education-at-a-glance/

https://www.oecd.org/media/oecdorg/satellitesites/berlincentre/pressethemen/AUSTRIA_Country-Note_PISA-2022.pdf

https://www.derstandard.at/story/3000000198312/pisa-studie-starker-rueckgang-bei-mathe-resultaten-in-oesterreich

Statistik Austria. 2022. “Bildung in Zahlen 2020/21.” https://www.statistik.at/fileadmin/publications/BiZ-2020-2021.pdf

To what extent does the current policy approach in the education system hinder or facilitate equitable access to high-quality education and training?

10
 9

Education policies are fully aligned with the goal of ensuring equitable access to high-quality education and training.
 8
 7
 6


Education policies are largely aligned with the goal of ensuring equitable access to high-quality education and training.
 5
 4
 3


Education policies are only somewhat aligned with the goal of ensuring equitable access to high-quality education and training.
 2
 1

Education policies are not at all aligned with the goal of ensuring equitable access to high-quality education and training.
Policies Targeting Equitable Access to Education
6
The Austrian educational system does not perform to its potential. Given Austria’s economic position, the country should have a significantly higher number of tertiary graduates. According to research institutions and experts such as the OECD, the reason for this underperformance lies in the early division of children into multiple educational tracks, which occurs after the fourth grade. Despite some improvements and the increasing role of the Fachhochschulen (universities of applied science, polytechnics), the Austrian educational system remains highly socially selective. Parents’ social and educational status heavily influences students’ ability to access higher education, aligning with Austria’s low score in the OECD PISA assessment regarding the socioeconomic background of pupils (23rd out of 30 in 2022).

Inequity has long been an issue in higher education, particularly within university systems. Access to the Austrian university system remains highly unequal, with children of parents holding tertiary education degrees and/or higher incomes enjoying better odds of graduating from a university. The new university reform bill, passed by the ÖVP-Green governing majority in March 2021, has further increased social inequity in higher education. Among other changes, the law introduced a new regime requiring students to earn a higher number of European Credit Transfer and Accumulation System (ECTS) points per semester to continue their studies, making it increasingly difficult to combine university education with employment in Austria.

The Austrian dual system of vocational training, which combines on-the-job training and classroom education, receives better marks. This system is primarily aimed at individuals who want to start working at age 15 but is accessible up to age 18. Despite its proven strengths, critics have identified several weaknesses in comparison with the neighboring German dual system and pointed to the continued limited public appreciation of this educational sector.

There is an established system of second-chance education opportunities for individuals with very low skill levels upon leaving school. However, it has been criticized for being overly traditional and less effective than it could be.

Early childhood education is still lacking, partly because of the resistance of the ÖVP government and the socially conservative preferences of Austrians compared to Northern Europeans.

Citations:
https://kurier.at/wirtschaft/karriere/warum-sich-ein-lehrabschluss-ueber-den-zweiten-bildungsweg-lohnt/401802811

https://www.ots.at/presseaussendung/OTS_20210622_OTS0105/mega-bildungsstiftung-praesentiert-1-
oesterreichischen-bildungsklima-index-anhaenge

https://kurier.at/freizeit/leben-liebe-sex/die-corona-krise-wird-zum-turbo-fuer-die-schulreform/401184538

https://www.derstandard.at/story/2000127332990/auf-ab-und-quer-fuer-oesterreichische-universitaeten

https://www.derstandard.at/story/2000122916023/hat-oesterreich-tatsaechlich-das-beste-dualeausbildungssystem

https://www.pedocs.de/volltexte/2017/15005/pdf/Dossier_2017_Brueckner.pdf

Sustainable Institutions Supporting Basic Human Needs

#4

To what extent do existing institutions ensure equal access to essential services and basic income support for those in need?

10
 9

Existing essential public services and basic income support are fully aligned with the goal of ensuring equal access for those in need.
 8
 7
 6


Existing essential public services and basic income support are largely aligned with the goal of ensuring equal access for those in need.
 5
 4
 3


Existing essential public services and basic income support are only somewhat aligned with the goal of ensuring equal access for those in need.
 2
 1

Existing essential public services and basic income support are not at all aligned with the goal of ensuring equal access for those in need.
Policies Targeting Equal Access to Essential Services and Basic Income Support
9
There is no explicit definition of “essential services” at the national or subnational level in Austria. However, services such as water, sanitation, and public transport are widely regarded as essential by the general population and political actors and, thus, are considered the responsibility of public authorities. There is also no official definition of people on low incomes in Austria. The monthly Equalisation Supplement Reference Rate (ESRR), defined under the statutory pension insurance scheme, regularly serves as a point of reference, though it is modified when applied in different systems of means-tested social provision (Baptista and Marlier 2020).

There is generally a high degree of equal access to housing, water, sanitation, energy, public transport, digital infrastructure, and financial services.

Municipal water supply utilities (“Wasserversorgungsunternehmen”) rarely disconnect services for unpaid bills, ensuring an uninterrupted supply and arranging mechanisms to find alternative solutions. Low-income households in Austria can apply for an exemption from fees associated with the introduction of the green electricity flat rate (“Ökostrompauschale”) and the green electricity promotional contribution. Additionally, these households may apply for a means-tested allowance for heating costs across all regions.

The main service provider in a given distribution network generally cannot reject customers due to financial difficulties. However, if payments are late or pending, the electricity provider may request monthly prepayments. In cases of further payment defaults, the power supply may be cut off. Additionally, there is a “telephone fee grant,” a special allowance covering parts of telephone and internet costs. People living in low-income households who receive at least one social benefit can apply for this grant (Baptista and Marlier 2020).

Austria and Portugal are the only two EU member states where national reduced tariffs exist for public transport for people with low incomes, and some cities and regions additionally implement tariff reductions that increase affordability for these individuals.

Austria is among the few countries where the application of the EU Payment Accounts Directive (PAD) has been specifically acknowledged as having a positive impact on consumer rights to financial services at the national level. In the past – before PAD – banks often rejected potential clients with financial liquidity problems or over-indebtedness, and “black lists” documenting such issues were shared among credit institutions. The transposition of PAD into national legislation paved the way for the development of innovative and inclusive financial solutions.

The various measures in place to facilitate access to essential services did not stem from a closely integrated process of strategic political planning, resulting in considerable variation in implementation across different states and regions of the country (Baptista and Marlier 2020).

Citations:
Baptista, Isabel, and Eric Marlier. 2020. Access to Essential Services for People on Low Incomes in Europe. An Analysis of Policies in 35 Countries. Brussels: European Commission.

To what extent do existing institutions and policies ensure high-quality services and basic income support?

10
 9

Existing essential public services and basic income support are fully aligned with the goal of satisfying basic human needs.
 8
 7
 6


Existing essential public services and basic income support are largely aligned with the goal of satisfying basic human needs.
 5
 4
 3


Existing essential public services and basic income support are only somewhat aligned with the goal of satisfying basic human needs.
 2
 1

Existing essential public services and basic income support are not at all aligned with the goal of satisfying basic human needs.
Policies Targeting Quality of Essential Services and Basic Income Support
8
Existing essential public services and basic income support are largely aligned with the goal of satisfying basic human needs.

Austria ranks in the middle of OECD countries in terms of overall poverty rate, holding the 15th position out of 30 in a recent Eurostat survey. The same source indicates that Austria’s risk of poverty or social exclusion rate is slightly above the average for OECD countries.

The share of the population experiencing severe material or social deprivation, however, has been conspicuously small in Austria. The proportion of the population unable to keep their homes adequately warm has been very low by comparative standards, and the same holds true for digital deprivation.

That said, there has been widespread public concern that this status is likely to be challenged by future developments. More specifically, labor organizations, such as the Chamber of Labor, have demanded the introduction of official minimum salaries, higher unemployment benefits and more investments in social housing.

Social housing may become a problem in the future, as the construction rate in this sector has declined over the past few years. At the same time, housing prices have risen significantly over the last decade, with a notable spike following 2021 and 2022 (Statistik Austria 2023). Part of these developments is due to the abandonment in 2008 of the legal requirement that social housing benefits be dedicated to social housing projects.

Accessibility of banking infrastructure for poorer people, including cash machines in remote areas or small villages, is still adequate in Austria.

Citations:
https://www.arbeiterkammer.at/essenoderheizen

https://ooe.arbeiterkammer.at/interessenvertretung/sozialesundgesundheit/soziales/Armut_in_Oesterreich.html

https://www.derstandard.at/story/3000000173945/bei-sozialwohnungen-droht-ein-engpass

https://www.derstandard.at/story/2000144363530/kanzler-nehammer-will-zweckbindung-der-wohnbaufoerderung-und-leistbares-eigentum

Statistik Austria. 2023. “Wohnen 2022. Zahlen, Daten und Indikatoren der Wohnstatistik.” https://www.statistik.at/fileadmin/user_upload/Wohnen-2022_barrierefrei.pdf

Sustainable Health System

#11

To what extent does current health policy hinder or facilitate health system resilience?

10
 9

Health policies are fully aligned with the goal of achieving a resilient health system.
 8
 7
 6


Health policies are largely aligned with the goal of achieving a resilient health system.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving a resilient health system.
 2
 1

Health policies are not at all aligned with the goal of achieving a resilient health system.
Policies Targeting Health System Resilience
6
In terms of total current healthcare expenditures as a percent of GDP, Austria has consistently ranked in the top third of OECD countries, as confirmed by 2022 figures.

Recent developments in Austria regarding spending on preventive and health programs (as a percentage of current healthcare expenditure) are particularly noteworthy. According to figures provided by the OECD, at 10.3%, the share spent on such measures in 2021 was more than four times higher than the average for the previous decade (2.2) and about three times higher than in 2020 (3.4). This placed Austria second among OECD countries, surpassed only by the UK.

Austria has long been among the leading countries for the number of hospital beds per 1,000 inhabitants. In 2022, it ranked third among OECD countries, behind Japan and Germany. However, like most other countries, the overall number of beds has slightly decreased over the past decade. Some even more impressive figures require further context: for example, Austria has had the highest number of physicians per 1,000 inhabitants among OECD countries, being the only country aside from New Zealand to ever exceed 5%, with a score of 5.48% in 2022. Nevertheless, a recurrent issue in recent political debates on healthcare in Austria has been the increasing shortage of physicians in some non-urban regions. More importantly, the share of physicians who were contracted partners of the public health insurance system (“Kassenärzte”) decreased from 4,213 to 4,054 between 2010 and 2020, and this trend has continued. According to a survey from 2023, more than two-thirds of Austrians were acutely aware of the increasing lack of “Kassenärzte” (Der Standard 2023).

In terms of state-of-the-art equipment, such as computed tomography scanners, Austria has been only in the middle field of OECD countries, even falling slightly below the average score. However, according to the “Health at a Glance” OECD report for 2023 (see Figure 5.24), regarding the use of CT, MRI, and PET diagnostic scanners, Austria was in the top group of OECD countries – alongside the United States, Luxembourg, Korea, and France.

No less importantly, Austria has recently experienced a shortage or unavailability of many standard pharmaceuticals. In 2023, approximately 600 pharmaceuticals were reported to be temporarily unavailable on the Austrian market (Kleine Zeitung 2023).

At the height of the coronavirus pandemic, the Austrian healthcare system was tested to its limits. Life expectancy for people living in Austria decreased slightly, though less dramatically than in several other countries. A recent assessment of the government’s and health system’s performance, published in late 2023, found that mistakes were made, but the overall performance was fair (see Krutzler 2023). Some indicators suggest, however, that the long-term effects of the pandemic may have been underestimated. For example, the number of reported cases of depression increased significantly more in Austria than in many other OECD countries.

Despite several positive aspects mentioned earlier, many observers have assessed the prospects of the Austrian health system as deficient, particularly in its ability to handle the challenges of an aging population. In 2023, the Standard, one of the country’s quality papers, launched a series of articles titled “The health system at its limits” (Springer 2023).

Apart from the lack of contracted physicians available to all insured patients, working conditions in Austrian hospitals have deteriorated over the last decade. Reports of personnel shortages and the closure of some hospital departments have surfaced (Krutzler and Müller 2023). In a representative study of nursing personnel in general departments of Austrian hospitals, almost one-third of nursing staff stated that their department is rarely or never adequately staffed to fulfill its tasks. Additionally, 84.4% of nursing staff reported at least one nursing intervention related to acute patient care was omitted in the past two weeks (Cartaxo, Eberl, and Mayer 2022). Waiting times for normally insured patients have increased in some regions.

The pandemic provided Austria with an opportunity to become one of the first Western European countries to develop an official electronic vaccination data system with electronic vaccination certificates. Meanwhile, digitalization has extended into other areas. Since mid-2022, there have been “e-prescriptions” replacing traditional paper prescriptions (see Digital Austria 2024).

The two-tier medical system has become a reality. Patients with private insurance have access to a wide variety of private physicians and clinics. In public hospitals, privately insured patients generally experience significantly shorter waiting times and receive better rooms and food.

One major problem concerns the rising costs. Although a specific agreement (“15a-Vereinbarung Zielsteuerung Gesundheit”) has been in place to reduce annual increases from 3.6% in 2017 to 3.2%, the agreed spending limits were more significantly exceeded in 2022 than in 2021 and appear poised to increase further (see Parlamentskorrespondenz 2023).

Citations:
https://kontrast.at/kassenarzt-wahlarzt-oesterreich/

Der Standard. 2023. “Zwei Drittel spüren den Kassenarzt-Mangel.” https://www.derstandard.at/story/2000146190053/zwei-drittel-spueren-den-kassenarzt-mangel

Kleine Zeitung. 2023. “Diese Medikamente fehlen derzeit in Österreich.” https://www.kleinezeitung.at/oesterreich/6260946/Offizielle-Liste_Diese-Medikamente-fehlen-derzeit-in-Oesterreich

Krutzler, David. 2023. “Corona-Aufarbeitung in Österreich mit Lücken.” https://www.derstandard.at/story/3000000200881/corona-aufarbeitung-in-oesterreich-mit-luecken

Krutzler, David, and Walter Müller. 2023. “Spitäler sind in ganz Österreich am Limit.” https://www.derstandard.at/story/2000145674427/spitaeler-in-ganz-oesterreich-am-limit

Springer, Gudrun. 2023. “Wo Österreichs Gesundheitssystem an seine Grenzen gerät.” https://www.derstandard.at/story/2000144918798/wo-oesterreichs-gesundheitssystem-an-seine-grenzen-geraet

https://misscare-austria.univie.ac.at/

Cartaxo, A., Eberl, I., and Mayer, H. 2022. “Die MISSCARE-Austria-Studie – Teil III.” HBScience 13 (Suppl 2): 61–78. https://doi.org/10.1007/s16024-022-00390-2


Digital Austria. 2024. “Digital Austria Act – Das Digitale Arbeitsprogramm der Bundesregierung/Einblicke in den Digital Austria Act/Digitales Gesundheitswesen.” https://www.digitalaustria.gv.at/Strategien/Digital-Austria-Act—das-digitale-Arbeitsprogramm-der-Bundesregierung/Einblicke-in-den-Digital-Austria-Act/Digitales-Gesundheitswesen.html

Parlamentskorrespondenz. 2023. https://www.parlament.gv.at/aktuelles/pk/jahr_2023/pk0973#:~:text=Da%20sich%20die%20%C3%B6ffentlichen%20Gesundheitsausgaben,17%2C08%20%25)%20%C3%BCberschritten

To what extent does current health policy hinder or facilitate achieving high-quality healthcare?

10
 9

Health policies are fully aligned with the goal of achieving high-quality healthcare.
 8
 7
 6


Health policies are largely aligned with the goal of achieving high-quality healthcare.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving high-quality healthcare.
 2
 1

Health policies are not at all aligned with the goal of achieving high-quality healthcare.
Policies Targeting High-Quality Healthcare
6
Austrian health policy generally facilitates high-quality healthcare, though within certain limits. The increasing shortage of doctors across the country who treat patients with public health insurance (see P11.1) certainly limits the quality of healthcare in Austria – not only in terms of choice but also in terms of receiving medical treatment on reasonably short notice.

A survey from 2023 found that nearly one-fifth of medical practices, while obliged to accept new patients with public health insurance, were unwilling to take on these patients (see Kleine Zeitung 2023). Additionally, there have been long waiting times for those who eventually secure an appointment. In Vienna in particular, there have been exceptionally long waiting times for receiving medical treatment in hospitals, as has been publicly criticized by the city’s Court of Audit. According to other sources, the lack of sufficiently trained doctors in hospitals, particularly emergency surgeons, has reached a critical stage, with doctors themselves pointing to the growing risk of losing established quality standards (see Der Standard 2023).

Concerning most established indicators of effective preventive care, such as women receiving mammography screening, Austria has ranked in the middle among OECD countries. One of the major challenges has been the development of “integrated care” for elderly people. Integrating care both within the health system and between health and social care has been a significant issue over the past two decades. This challenge is mainly due to the fragmentation of responsibilities, information flows, and funding sources. With the rising number of people with chronic conditions and new patterns of care needs, such as dementia, problems between hospitals and community care have become evident. Consequently, several initiatives have been launched in Austria to adapt organizational structures and processes, such as information exchange, hospital discharge procedures, and education and training programs. However, to date, these reforms have been assessed as piecemeal, often discontinued, and not systematically evaluated.

Citations:
https://www.kleinezeitung.at/politik/innenpolitik/aerztemangel/6150208/Aerztemangel_Recherche-in-135-Ordinationen_Wie-lange-man-auf

https://www.derstandard.at/story/2000144918798/wo-oesterreichs-gesundheitssystem-an-seine-grenzen-geraet

https://ehma.org/app/uploads/2022/12/Country-report-Austria_20180801.pdf

https://www.meinbezirk.at/wien/c-politik/stadtrechnungshof-kritisiert-wiener-spitaeler_a5101135

To what extent does current health policy hinder or facilitate equitable access to high-quality healthcare?

10
 9

Health policies are fully aligned with the goal of achieving equitable access to high-quality healthcare.
 8
 7
 6


Health policies are largely aligned with the goal of achieving equitable access to high-quality healthcare.
 5
 4
 3


Health policies are only somewhat aligned with the goal of achieving equitable access to high-quality healthcare.
 2
 1

Health policies are not at all aligned with the goal of achieving equitable access to high-quality healthcare.
Policies Targeting Equitable Access to Healthcare
7
The existing policies and regulations largely ensure equitable access to healthcare. There are specific rules designed to support people with certain illnesses or, more generally, those with low incomes; for example, these groups do not have to pay any prescription fees for pharmaceuticals.

However, as mentioned above, the share of the population for whom swift treatment and free choice of doctors is always available is shrinking. This trend is due to an increasing shortage of registered doctors accepting patients with any kind of public health insurance. The lack of these “Kassenärzte” is particularly felt in rural areas. Additionally, there is a notable difference between individual states in terms of the number of hospitals, leading to certain regional disparities.

In 2022 it became known that the “Wiener Gesundheitsverbund” – which represents doctors and care staff in Vienna – had issued an internal directive instructing Viennese hospitals not to treat patients lacking primary residential status in Vienna, due to a lack of resources (Stepan 2022). This directive is not in line with laws that explicitly allow any resident of Austria to report to any hospital in the country.

People with private health insurance are generally admitted to hospitals more easily, receive more timely treatment, and sometimes even better care. For example, some medications, such as Sofosbuvir for Hepatitis C, are only available to those with private health insurance.

While a latent division exists between groups of the population dependent on publicly financed treatment and those able to pay for particular treatments from their own funds, this bias does not strongly correlate with other features such as gender or ethnicity. The group of resident migrants in Austria includes both poor and exceptionally well-off individuals. Additionally, unlike some other countries, such as Germany, asylum-seekers in Austria have full and immediate access to the Austrian health system (praktischarzt.at n.d.).

Furthermore, unmet need (see P11.8) is quite low in Austria, according to data from Eurostat.

Citations:
https://kommunal.at/gesundheitsversorgung-im-laendlichen-raum

Stepan, Max. 2022. “Personen ohne Wiener Hauptwohnsitz werden in Wiener Spitälern abgewiesen.” https://www.derstandard.at/story/2000141642420/personen-ohne-hauptwohnsitz-werden-in-wiener-spitaelern-abgewiesen

praktischarzt.at. n.d. “Gesundheit von Flüchtlingen: Österreich vs. Deutschland.” https://www.praktischarzt.at/magazin/gesundheit-von-gefluechteten-oesterreich-vs-deutschland/

https://www.oesterreich.gv.at/themen/soziales/armut/3/Seite.1693901.html

Gender Equality

#11

How committed is the government to ensuring gender equality in all respects?

10
 9

The government is clearly committed to the goal of ensuring gender equality.
 8
 7
 6


The government is largely committed to the goal of ensuring gender equality.
 5
 4
 3


The government is only somewhat committed to the goal of ensuring gender equality.
 2
 1

The government is not at all committed to the goal of ensuring gender equality.
Policy Efforts and Commitment to Achieving Gender Equality
7
Generally, the issue of gender equality has figured prominently in Austrian public discourse. This has come to be symbolized by ongoing discussions about formal rules for adequately gendered language, which may be considered an evasion strategy.

Many agencies are designed to support women and provide emergency shelter. There are also several programs, such as scholarships, exclusively for women. Women’s issues are specifically acknowledged at the level of ministerial departments; however, there is no particular department for women’s affairs. Instead, in the current Nehammer government, the responsibilities for women, family, integration, and media have been merged into one department, which does not prioritize gender equality.

The representation of women in the Austrian national parliament (Nationalrat) has increased significantly in recent years, reaching an all-time high of slightly above 40% after the 2019 national election, up from just 34.4% after the 2017 election. With this increase, Austria currently ranks 9th among 30 OECD countries covered in a recent study (World Bank 2022).

Similar dynamics can be observed at the level of female ministers. Between January 2020 and January 2021, the ÖVP-Green government (Kurz II) was the first federal government to include more female than male members. However, much like the representation of women in parliament, this trend has not been self-reinforcing and has faced setbacks. In late 2023, the current ÖVP-Green government, led by Chancellor Nehammer, included eight male ministers and only five female ministers.

Other indicators, such as the percentage of women in leading corporate positions, demonstrate that gender equality continues to be a major challenge. In 2023, women made up only 7.6% of directors on the boards of major Austrian companies listed in the Austrian Traded Index (ATX). This gives Austria the second-highest proportion of male directors on the boards of major companies in Europe, after Luxembourg (6%). Similarly, the gender pay gap across various occupations has been significant. According to recent OECD figures, Austria ranks 27th out of 30 OECD countries in terms of gender pay equity. Another closely related bias concerns average pension entitlements, with women receiving about 40% less than their male counterparts. These figures are all the more remarkable considering that, overall, women in Austria now lead in higher educational achievements, including academic qualifications.

The disproportionate burden borne by women within Austrian families can be seen as an aspect of de facto gender discrimination. Additionally, Austrian welfare transfers for mothers are designed in a way that keeps mothers out of the labor market. In numerous cases, legal provisions for the protection of parents, such as job protection for those switching to part-time work, are not respected by employers. Recent developments in this area include an increase in the employment rate of mothers in Austria from just over 64% in 2010 to nearly 68% in 2020, although this rate remains considerably lower than that for employed fathers at slightly above 90%. The – often involuntarily chosen – part-time occupation of women has also been significantly higher than for men (Schipfer and Wernhart 2022).

Recent Austrian governments have acknowledged and targeted some of these issues by introducing quotas for women in the civil service and semi-public companies or by exempting women, particularly mothers, from certain demanding jobs. However, progress has remained slow and patchy in many areas, especially regarding child care facilities for very young children.

Citations:
https://www.demokratiezentrum.org/wp-content/uploads/2022/10/heitzmann_armut_weibl.pdf

https://www.momentum-institut.at/news/bildungsreport-bildung-gender-und-einkommen-oesterreich

https://www.oesterreich.gv.at/themen/dokumente_und_recht/frauenfoerderung/Frauenfoerderung_in-Unternehmen.html

World Bank. 2022. “Dataset: Gender Statistics, Proportion of seats held by women in national parliaments.” https://databank.worldbank.org/reports.aspx?source=gender-statistics

Schipfer, Rudolf K., and Georg Wernhart. 2022. “Bildung, Erwerbstätigkeit, Arbeitsmarkt – und Familie: Entwicklungen und Veränderungen.” Beziehungsweise: Informationsdienst des Österreichisches Institut für Familienforschung, April.

Strong Families

#17

To what extent does the current family policy approach support or hinder unpaid family care work?

10
 9

Family policies are fully aligned with the goal of creating the conditions for strong families.
 8
 7
 6


Family policies are largely aligned with the goal of creating the conditions for strong families.
 5
 4
 3


Family policies are only somewhat aligned with the goal of creating the conditions for strong families.
 2
 1

Family policies are not at all aligned with the goal of creating family-friendly conditions.
Family Policies
7
Both the federal government and mainstream public opinion acknowledge that the traditional nuclear family model, defined by stable and clearly divided gender roles, does not represent the reality for all families in the 21st century. Still, family policies are often viewed as reflecting a decidedly “conservative” notion of families and the roles of women and men within them.

Public childcare centers exist but – despite some recent improvements – fail to meet demand. Childcare facilities for children aged one and under are often lacking outside the capital, Vienna, while facilities for children aged two to five fail to meet the needs of working parents. The overall share of children (age 0-2) in formal childcare or education for 30 hours or more has been very low, clearly below the OECD average. Remarkably, the share identified for 2022 is lower than that for both 2021 and 2015. The figures for children aged 3 to 5 in formal childcare or education for 30 hours or more have been relatively stable, without significant setbacks over time.

Access to the labor market for married women is not seriously disputed. Nevertheless, the provision of childcare is still overwhelmingly left to families, which effectively means that primary responsibility falls to mothers. The current length of paid maternity, parental, and home care leave for women is 60 months, slightly above the OECD average of 56 months. In terms of ranking, Austria is among the top third of OECD countries. However, the Austrian Chamber of Labour has recently highlighted numerous deficiencies in the day-to-day performance of this system, making it rather difficult for women to secure the funds they are legally entitled to (Mittelstaedt 2020).

There is a specific maternity leave scheme in place that covers 16 weeks – eight weeks before birth and eight weeks after. Taking this leave is mandatory. There is also a one-month paternity leave, known as “Papamonat.” However, the proportion of men taking advantage of this paternity leave has been slightly decreasing recently.

About 80% of sick and elderly people in need of regular care are being taken care of by their families – a task overwhelmingly met by women. Austrian governments have supported such activities by providing specific resources, known as “Pflegegeld.”

Austrian governments have continuously expanded the flow of resources directed to family policy. However, although overall entitlements for families rose by nearly 50% net between 2000 and 2020 (accounting for inflation), Austria still lags behind many OECD countries. The current Nehammer government has continued to improve the living conditions for families. In 2023, the Family Bonus Plus was increased from €1,500 per child per year to €2,000 per child per year. For births after December 31, 2022, the “family-time bonus” no longer reduces a later childcare benefit. Starting in 2023, the childcare benefit and the “family-time bonus” are automatically adjusted for inflation each January. Additionally, the government introduced a special bonus for family-based care if the person to be cared for is seriously or mentally ill.

Citations:
https://www.derstandard.at/story/2000135152647/oesterreich-gibt-immer-mehr-fuer-kinder-aus-und-hinkt-dennoch

https://www.momentum-institut.at/system/files/2020-03/pb_200304_kinderbetreuung.pdf

https://www.leavenetwork.org/fileadmin/user_upload/k_leavenetwork/annual_reviews/2023/Austria2023.pdf

https://www.parlament.gv.at/aktuelles/pk/jahr_2023/pk1151

Mittelstaedt, Katharina. 2020. “Die Schikanen nach dem Kinderkriegen.” https://www.derstandard.at/story/2000119510651/die-schikanen-nach-dem-kinderkriegen

Sustainable Pension System

#18

To what extent does the current pension policy approach prevent poverty among senior citizens?

10
 9

Pension policies are fully aligned with the goal of preventing old-age poverty.
 8
 7
 6


Pension policies are largely aligned with the goal of preventing old-age poverty.
 5
 4
 3


Pension policies are only somewhat aligned with the goal of preventing old-age poverty.
 2
 1

Pension policies are not at all aligned with the goal of preventing old-age poverty.
Policies Aimed at Old-Age Poverty Prevention
7
Austria has long been considered “a haven for retirees,” especially among seniors from neighboring Germany, with average pensions about 80% higher in Austria than in Germany. A closer look, however, reveals that the whole system relies significantly on additional contributions by employed individuals and on additional tax money diverted to this sector.

As of 2023, one-fourth of the Austrian public budget is allocated to the old-age pension system. Of the €14 billion, €1.2 billion is dedicated to raising low pensions to a minimum level, while the rest goes to other pensioners. In 2021, the average retirement age was 60.9 years. According to public planning, the retirement age should be raised to 62 years by 2030 (Austrian Parliament 2022). A larger adaptation to rising lifetimes should be planned (Heer et al. 2023).

To combat the effects of recent high inflation on income, Austria – like several other countries, such as Germany, Portugal, and Poland – has implemented significant ad hoc payments for pensioners.

Given these figures, it is not surprising that Austria ranked conspicuously low in the 2023 Mercer report on the overall quality of its pension system, receiving an overall score of “C” on a scale from A to D (ranked 40 out of 47 countries). While Austrian pensions generally aim to prevent old-age poverty, the report suggested measures such as increasing the minimum level of support for the poorest elderly individuals and introducing arrangements to protect the pension interests of both parties in a divorce. As in most countries, women tend to receive significantly lower pensions. However, the key problem with the Austrian pension system has been identified as its tremendous costs and effective unsustainability (see also P14.2).

Citations:
https://www.mercer.com/assets/global/en/shared-assets/global/attachments/pdf-2023-mercer-cfa-global-pension-index-full-report-11-09-2023.pdf

https://www.merkur.de/wirtschaft/rentensystem-vorteile-nachteile-faktencheck-rente-deutschland-oesterreich-vergleich-zr-92647602.html

https://www.merkur.de/wirtschaft/alter-altersarmut-wirtschaft-rente-deutschland-oesterreich-rentensystem-rentenbezuege-zr-92281223.html

Heer, B., V. Polito, and M. R. Wickens. 2023. “Pension system (un)sustainability and fiscal constraints: A comparative analysis.” CEPR Discussion Paper DP18181.

https://www.kleinezeitung.at/home/17746326/jeder-vierte-pensions-euro-fliesst-in-die-pensionen

Austrian Parliament. 2022. “Parliamentary Correspondence No. 1262 Dating 11.10.2022.” parlament.gv.at

To what extent does the current pension policy approach hinder or promote intergenerational equity?

10
 9

Pension policies are fully aligned with the goal of achieving intergenerational equity.
 8
 7
 6


Pension policies are largely aligned with the goal of achieving intergenerational equity.
 5
 4
 3


Pension policies are only somewhat aligned with the goal of achieving intergenerational equity.
 2
 1

Pension policies are not at all aligned with the goal of achieving intergenerational equity.
Policies Targeting Intergenerational Equity
5
Regarding public expenditure on old-age and survivors’ benefits as a percentage of GDP, Austria has consistently ranked in the top five among OECD countries. Recent initiatives by the Austrian government include the creation of a new system allowing citizens to work beyond the standard retirement age in exchange for special pension benefits.

Still, as noted above, the de facto pension age is below 61 years and is projected to rise only in very small steps until 2030. At the same time, public expenditures to support the pension system are expected to increase. Given rising life expectancy, a gradual increase in the actual retirement age is necessary. The last government avoided discussing pension reform, and the current chancellor’s election manifesto does not mention it either.

While specific projections, such as those by the Chamber of Labor, suggest that the key challenge of “intergenerational equity” is being addressed comparatively well in Austria, others point to the system’s unsustainability in the medium run (see above).

In a report commissioned by the European Commission, the average elderly-to-non-elderly spending ratio in Austria increased from 1.71 to 2.10 between 2002 and 2017.

Citations:
https://www.arbeiterkammer.at/interessenvertretung/arbeitundsoziales/pensionen/AK_OEGB_Handout_GerechtigkeitfuerPensionen.pdf

https://www.kleinezeitung.at/wirtschaft/17810395/laenger-arbeiten-so-rechnet-es-sich

Raitano, M., Karagiannaki, E., Premrov, T., Geyer, L., Fuchs, M., Bloise, F., and De Micheli, B. 2021. Study on Intergenerational Fairness, Report for the EC.

Sustainable Inclusion of Migrants

#25

To what extent does the current policy approach hinder or facilitate the inclusion of migrants into society and the labor market?

10
 9

Integration policies are fully aligned with achieving the sustainable inclusion of migrants in society.
 8
 7
 6


Integration policies are largely aligned with achieving the sustainable inclusion of migrants in society.
 5
 4
 3


Integration policies are only somewhat aligned with achieving the sustainable inclusion of migrants in society.
 2
 1

Integration policies are not at all aligned with achieving the sustainable inclusion of migrants in society.
Integration Policy
5
Regarding the employment rate for the foreign-born compared to the native-born population (age group 15-64 years), Austria ranks in the middle among OECD countries. However, the share of migrants among the unemployed is significantly higher in Austria than in nearly any other OECD country except Sweden.

German language courses for migrants whose mother tongue is not German have been offered early on. There is also language training for older migrants. However, despite these efforts, the lack of proper language skills has remained a key obstacle to securing a suitable job among the foreign-born labor force in Austria, much more so than in most other OECD countries. Meanwhile, even recent conservative governments have come to consider the present measures insufficient to ensure a smooth integration of migrants into the Austrian labor market (Kurier 2023). In particular, the share of working migrant women has been considered deficient. Additionally, the impact of the coronavirus pandemic hit both male and female migrants in Austria harder than the country’s non-migrant population.

Regarding the labor market, the Austrian government is half-heartedly welcoming employees arriving from foreign countries. Its policies, including the “red-white-red card,” are neither well-received by economic actors nor successful in attracting highly skilled professionals. The indirect, undeclared alliance between organized labor – which defends the short-term interests of union-protected workers and is usually linked politically to the left – and the far-right – which exploits xenophobic resentments, especially the FPÖ – creates a political climate that sometimes breaks into open hostility, particularly against migrants from Muslim countries.

Education in urban areas, and to a lesser extent rural areas, faces the challenge posed by children of first-generation migrants within school systems with constrained resources. As a result, children from migrant families find it more difficult to qualify for higher education and are often placed in the lowest types of schools. This situation also significantly fuels the discontent of “native” Austrian parents with children in these schools, where achieving successful educational outcomes is becoming increasingly difficult. Special support policies for such children have recently been implemented, but it remains to be seen how successful these policies will be in the short to medium term.

Spouses, registered partners, and unmarried minor children are entitled to migrate to Austria for family reunification. The parents of minor children also fall within the scope of family reunification under the Asylum Act. Any marriage or registered partnership must, however, already have existed in the country of origin or prior to entry into Austria. The key requirements for family reunification include accommodation meeting local standards, adequate health insurance coverage, and a secure means of subsistence. Exemptions from these requirements exist for family members of persons granted asylum when family reunification is applied for within three months of recognition of refugee status (Lukits 2016).

Austrian laws concerning naturalization are extremely strict, leaving hundreds of thousands of individuals living legally in Austria excluded from political rights. Cases documented by NGOs have shown that members of the Austrian police have used cruelty and violence in interactions with non-citizens, especially migrants without residence permits.

Overall, regarding the situation of migrants, political asylum-seekers, and refugees, Austrian society and the political system face a specific cross-pressure: integrating newcomers while defending the prerogatives of Austrian citizens. While Austrians have repeatedly been found to be among the happiest nations in Europe, various surveys indicate that migrants living in Austria are strikingly unhappy. A survey among expats, published in 2021, found Vienna to be “the most unfriendly major city in the world.” A more recent study suggests significant differences among migrants. Generally, “refugees who scored higher on host-country-specific language proficiency, social contacts, and a feeling of relatedness have significantly higher levels of life satisfaction” (Haindorfer et al. 2022).

The current ÖVP-Green government is the first federal government to include a full minister for integration. In general, the integration of migrants in Austria faces the challenge of needing labor migration while being one of Europe’s primary havens for refugees, who often lack the necessary skills for jobs in the country.

Citations:
Haindorfer, Raimund, Bernd Liedl, and Bernhard Kittel. 2022. “The Integration Resources of Refugees and Life Satisfaction: Evidence from the City of Vienna.” Journal of Immigrant & Refugee Studies. https://doi.org/10.1080/15562948.2021.2022820

Lukits, Rainer. 2016. Family Reunification of Third-country Nationals in Austria. Vienna: International Organization for Migration, Country Office for Austria.

https://euromedmonitor.org/en/article/5642/%E2%80%9CHappiness,-Love-and-Understanding%E2%80%9D:-The-Protection-of-Unaccompanied-Minors-in-the-27-EU-Member-States

https://de.statista.com/statistik/daten/studie/819497/umfrage/arbeitslosenzahl-in-oesterreich-nach-nationalitaet/

https://kurier.at/politik/inland/raab-fuer-raschere-integration-ein-deutschkurs-ist-kein-vollzeitjob/402668746

https://www.derstandard.at/story/2000146490844/wo-bleibt-die-migrationsstrategie

Effective Capacity-Building for Global Poverty Reduction

#20

How committed is the government to helping build the capacity to reduce poverty and provide social protection in low- and middle-income countries?

10
 9

The government’s development cooperation strategy is fully aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
 8
 7
 6


The government’s development cooperation strategy is largely aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
 5
 4
 3


The government’s development cooperation strategy is only somewhat aligned with the goal of improving capacity-building in poverty reduction in low- and middle-income countries.
 2
 1

The government’s development cooperation strategy is not all aligned with the goal of improving capacity-building for poverty reduction in low- and middle-income countries.
Management of Development Cooperation by Partner Country
5
Austria has long provided rhetorical support to agendas aimed at improving the global social balance. However, when it comes to actions such as spending public money to aid development in developing countries, Austria has been notably slow to fulfill its promises.

Recently, the government launched a new three-year Austrian development policy program for the period 2022 – 2024. According to the government, this program aims to open up sustainable life prospects for people in partner countries by fostering social and political stability, along with sustainable development in line with the 2030 Agenda. The program was designed to provide development policy responses to evolving global challenges, including the war in Ukraine. As a first step, the budget for bilateral development aid was increased by €12 million to a total of €137 million, and the budget for humanitarian aid was raised by €20 million to €77.5 million.

An OECD mid-term review, published in early 2023, acknowledged the government’s three-year program as “a welcome step toward a more coordinated approach,” but deplored the absence of “a whole-of-government strategy.”

According to a more recent CARE announcement, Austria’s overall investments in this field – after reaching its highest-ever score in 2022 (0.39% of GDP) for Official Development Assistance – were set to fall to just 0.27% in 2024.

Citations:
https://www.vindobona.org/article/austrian-government-adopts-new-three-year-program-for-development-policy

https://www.ots.at/presseaussendung/OTS_20231124_OTS0010/care-zum-budget-senkung-der-oda-quote-gibt-anlass-zur-sorge#:~:text=Erreichte%20%C3%96sterreich%202022%20mit%200,23%20Prozent%20zu%20fallen%20%E2%80%93%20das

https://www.oecd.org/dac/peer-reviews/web_letter_austria_mtr_2023.pdf
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