3. The high gender pay gap
3
Source: EUROSTAT
0
5
10
15
20
25
FRA SWE NLD EU 27 DNK CHE DEU AUT
Hourly wage gaps are the highest among comparable countries, 2013
4. Main Findings
o Growth has stalled since 2012 but is expected to improve
o Unemployment is low but rising
o Productivity is weak in most services
o Austria loses ground in some major export markets
4
5. Key policy recommendations
o Continue to repair and strengthen the banking sector
o Reduce the labour tax wedge for low income earners
o Increase effective retirement ages
o Reduce barriers to competition in services
o Encourage municipal mergers and increase the tax autonomy of sub-
central governments
5
11. 11
Taxation still hurts low-income work
1. Single individual without children at the 67% income level of the average worker. Includes payroll taxes where applicable.
Source: Calculations based on marginal rates on regular instalments as of April 2015 as communicated by the Austrian
government; and OECD Taxing Wages database.
0
10
20
30
40
50
60
0
10
20
30
40
50
60
Income tax plus employee and employer social security contributions, 2014 ¹
Employer SSC Employee SSC Income tax
.
After tax reform as of 1st
January 2016
As a % of labour costs
12. Barriers to competition in services are high
12
Reviving labour productivity: strengthening the real sector
16. Gender roles diverge through the life cycle
o The separation of roles deepens after the birth of a first child
o The Austrian gender role model is backed by existing institutions
o Arrangements come under growing pressure amid very weak work-life balances
o More gender equality would improve potential growth by fostering labour force
participation and human capital
16
17. How to foster gender equality
o Foster awareness and evidence on persisting gender gaps, policies and
outcomes
o Spur investment in high quality child care facilities
o Reduce taxation of move from marginal and part-time to full-time work
o Create unique childcare allowance account with a large part reserved to
exclusive use of fathers
o Develop more family-friendly workplaces in the private sector, supported by
the government and social partners
17
