Austria

   

Social Policies

#20
Key Findings
Austria’s social policies show significant strengths and weaknesses, placing it in the middle ranks in international comparison (rank 20). Its score on this measure has improved by 0.2 points relative to 2014.

The pandemic subjected the health and education systems to severe stresses. The reliance on recurrent “digital-only” teaching is viewed as a potential driver of increased inequality over the long run. Public trust in the healthcare system declined substantially during the pandemic’s first year. A major recent reform merged nine regional health insurance funds.

Public childcare centers fail to satisfy demand. Families – largely women – bear primary childcare responsibility. The design of welfare transfers keeps mothers out of the labor market. The share of women in key political positions has improved, but gender imbalances are still clear within corporate management ranks.

The openly xenophobic rhetoric of previous governments has been abandoned. However, integration efforts remain deficient, and migrants were disproportionally harmed by the effects of COVID-19. Austria has blocked attempts to develop a binding common EU refugee policy.

Education

#27

To what extent does education policy deliver high-quality, equitable and efficient education and training?

10
 9

Education policy fully achieves the criteria.
 8
 7
 6


Education policy largely achieves the criteria.
 5
 4
 3


Education policy partially achieves the criteria.
 2
 1

Education policy does not achieve the criteria at all.
Education Policy
6
The Austrian educational system does not perform to its potential. Considering Austria’s economic position, the country should have a significantly higher number of tertiary graduates. The reason for this underperformance is seen by research institutions and experts such as the OECD to lie with the early division of children into multiple educational tracks, which takes place after the fourth grade. Despite the fact that there has been some improvement and partly as a result of the increasing role of the Fachhochschulen (universities of applied science, polytechnics), the Austrian educational system continues to be highly socially selective. Parents’ social (and educational) status is highly reflected in students’ ability to access higher education. This state of affairs violates the concept of social justice and fails to exploit the population’s talents to the fullest.

A particular challenge is the significant number of children of first-generation immigrants who don’t have German as their mother tongue. The Austrian educational system has not fully succeeded in guaranteeing that immigrant children after nine years of schooling are able to read and write German fluently. Perhaps ironically, the ÖVP and FPÖ, parties many of whose members hold strong anti-immigrant views, recently increased resources devoted to German language teaching for immigrants in Austrian elementary schools. Ultimately, this can be seen as a reflection of their strong commitment to the idea of an Austrian Leitkultur.

A recent survey (2021) – interviewing teachers, pupils and parents – that focused on the quality of teaching in schools and school infrastructure reported medium-level satisfaction scores (2.8 on a scale of one to five); only 9% of all respondents judged Austrian schools as “very good.” Another recent study (2021) involving teachers, pedagogues, pupils and parents reported that, while the coronavirus pandemic put a heavy burden on Austrian schools countrywide, 60% of respondents were convinced that the pandemic seemed likely to become a catalyst for structural reform, particularly digitalization reform. As the coronavirus pandemic wore on, there were increasing worries among experts and the general public that the government’s handling of the COVID-19 challenge in schools, with recurrent “emergency teaching programs” and “digital-only teaching,” risked increasing inequality in education and society in the longer run.

Inequity has long been an issue at the level of higher and, in particular, university education. Access to the Austrian university system is still highly unequal, with children of parents holding tertiary education degrees and/or having higher incomes enjoying better odds of graduating from university. The new university reform bill, passed by the ÖVP-Green governing majority in March 2021, increased social inequity in higher education. Among many other things, the law introduced a new regime, obliging students to gain a higher number of ECTS points per semester to continue their studies, which makes it increasingly difficult to combine university education with employment in Austria. There was little change in the perceived overall performance of Austrian universities between 2020 and early 2022, compared to 2017–19, as documented by international university rankings, such as the QC or Times Higher Education rankings.

The Austrian dual system of vocational training, involving simultaneous on-the-job training and classroom education, receives better marks. This system is primarily aimed at individuals who want to take up work at the age of 15, but is accessible up to the age of 18. For all its proven strengths, however, critics have pointed to several weaknesses, when compared with the neighboring German dual system, and the continued limited public appreciation of this educational sector.

Citations:
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-duale-ausbildungssystem

Social Inclusion

#11

To what extent does social policy prevent exclusion and decoupling from society?

10
 9

Policies very effectively enable societal inclusion and ensure equal opportunities.
 8
 7
 6


For the most part, policies enable societal inclusion effectively and ensure equal opportunities.
 5
 4
 3


For the most part, policies fail to prevent societal exclusion effectively and ensure equal opportunities.
 2
 1

Policies exacerbate unequal opportunities and exclusion from society.
Social Inclusion Policy
7
Austria’s society and economy are rather inclusive, at least for those who are Austrian citizens. The Austrian labor market is nevertheless not as open as it could be. For those who are not fully integrated, especially younger, less-educated persons and foreigners (particularly non-EU citizens), times have become harder. Outside the labor market, unequal outcomes within the education system and the remnants of gender inequality perpetuate some problems of inclusiveness. An additional challenge is the situation of migrants, political asylum-seekers and refugees. Austrian society and the political system are facing a very specific cross-pressure, combining the integration of newcomers while defending the prerogatives of Austrian citizens. While Austrians have repeatedly been found to be among the luckiest nations in Europe, various surveys have found migrants living in Austria to be strikingly unhappy. A survey among expats, published in 2021, found Vienna to be “the most unfriendly major city in the world” (largely confirming previous scores).

Income inequality has been largely persistent over the past decade, with a very moderate downward trend. The income differential between men and women has narrowed over the past decade, from nearly 25% to just under 20%, but continues to be above the EU average.

The number of people living in poverty has remained largely stable over the last few years, again with some (very) moderate improvements in the more recent past, and with an overall score well above the EU and OECD average. However, the exact effects of the coronavirus pandemic are difficult to judge. Surveys carried out in late 2020 reported a significant increase in subjective perceptions of possibly being affected by poverty in the near future. In the spring of 2021, the government committed to halving the number of people living in poverty, which includes a large number of single mothers and families with three or more children.

According to the Global Wealth Report 2021, wealth inequality is modest in Austria (the country’s Gini coefficient was 73.5 in 2020); it is higher in neighboring Germany and Switzerland (77.9 and 78.1 respectively) and lower than in many other European countries, including much of Scandinavia. The two decades from 2000 to 2020 saw a reduction in Austria’s Gini coefficient from 79.2 down to 73.5. Some doubts remain as to the adequate representation of high earners in that data, as other surveys point to more striking differences.

The representation of women in the national parliament (Nationalrat) has increased significantly in recent years, reaching an all-time high of 40.4% in late 2021 (as a result of the 2019 national election), up from 34.4% in the 2017 national election, and well above the EU average for 2020 (33%). 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 that included more female than male members. The appointment of the first female federal chancellor (Brigitte Bierlein) in June 2019 is well worth noting in its own right. However, Bierlein did not emerge from the usual political competition, but was appointed by the federal president as the head of an all-expert caretaker government.

Other indicators (e.g., the percentage of women in leading corporate positions) demonstrate that gender equality continues to be a major challenge. In early 2021, women made up only 17 out of 225 directors (7.6%) on the boards of major Austrian companies listed on the ATX, meaning that Austria has the second highest proportion of male directors on the boards of major companies in Europe, after Luxembourg (4%).

Citations:
Poverty rates: http://www.armutskonferenz.at/armut-in-oesterreich/aktuelle-armuts-und-verteilungszahlen.html


https://kurier.at/mehr-platz/wien-wurde-zur-unfreundlichsten-stadt-gewaehlt/401826088
https://www.statistik.at/web_de/statistiken/menschen_und_gesellschaft/soziales/gender-statistik/einkommen/index.html

https://www.ots.at/presseaussendung/OTS_20210429_OTS0079/mueckstein-zur-armutsbekaempfung-regierungsziel-armut-zu-halbieren-kann-nur-mit-umfassenden-massnahmen-in-allen-ressorts-gelingen

http://docs.dpaq.de/17706-global-wealth-report-2021-en.pdf

https://www.wienerzeitung.at/nachrichten/wirtschaft/oesterreich/2095310-Ein-exklusiver-Club-Ein-Vorstand-ist-nach-wie-vor-maennlich.html

Health

#10

To what extent do health care policies provide high-quality, inclusive and cost-efficient health care?

10
 9

Health care policy achieves the criteria fully.
 8
 7
 6


Health care policy achieves the criteria largely.
 5
 4
 3


Health care policy achieves the criteria partly.
 2
 1

Health care policy does not achieve the criteria at all.
Health Policy
7
The Austrian healthcare system is based on several pillars. Public health insurance covers the basic needs of most persons living legally in Austria, while a competitive private health-insurance industry offers additional benefits. Inequalities in healthcare have arisen, particularly between those able to afford additional private insurance and those who cannot. Still, inequalities between ordinary and private patients are much less pronounced than, for example, in Germany. In contrast to Germany, civil servants pay into the same public health insurance system as everyone else. One element of the government’s tax reform passed in late 2021 included a reduction in health insurance contributions for lower income earners (worth about €300 per year).

On 1 January 2020, as a part of an ongoing healthcare reform, the Austrian Health Insurance Fund (Die Österreichische Gesundheitskasse, ÖGK) was created by merging the nine former regional health insurance funds. The ÖGK is based in Vienna. With a volume of benefits of almost €15.3 billion and about 20,000 contractual partners, the Austrian Health Insurance Fund covers the healthcare services of about 7.2 million people. A key motive for this reform was cost reduction (which was mainly achieved by cutting personnel) to be accompanied by making more resources available to patients. However, in early assessments of the ÖGK in 2021, it became clear that personnel costs had increased by more than 3%.

The development of the healthcare environment in Austria is largely in line with European trends. At the height of the coronavirus pandemic, the Austrian healthcare system was tested to its limits. A survey study found that public trust in the Austrian healthcare system decreased significantly over the first year of the pandemic (early 2020 through to early 2021), although less so than trust in the government. In the wake of the coronavirus pandemic, life expectancy for people living in Austria decreased slightly, but less dramatically than in several other countries.

Austria has remained a top scorer in terms of the number of physicians per 1,000 inhabitants. However, a recurrent issue in recent political debates on healthcare in Austria has been the shortage of physicians in some (non-urban) regions. More importantly, the share of physicians that were contracted partners of the public health insurance system (Kassenärzte) decreased (from 4,213 to 4,054) between 2010 and 2020. Meanwhile, the number of physicians servicing private patients (Wahlärzte) increased over the same period (from 2,119 to 2,653). As private patient physicians in general are not available to people without private healthcare insurance, and given population aging and therefore increased demand on healthcare services, this development provides a clear picture as to the overall quality of services provided (exclusively) by the public healthcare system.

Citations:
https://viecer.univie.ac.at/corona-blog/corona-blog-beitraege/corona-dynamiken22/

https://orf.at/stories/3227790/

https://www.diepresse.com/5862134/mangel-an-kassenshyarzten-schieflage-verstarkt-sich

Families

#20

To what extent do family support policies enable women to combine parenting with participation in the labor market?

10
 9

Family support policies effectively enable women to combine parenting with employment.
 8
 7
 6


Family support policies provide some support for women who want to combine parenting and employment.
 5
 4
 3


Family support policies provide only few opportunities for women who want to combine parenting and employment.
 2
 1

Family support policies force most women to opt for either parenting or employment.
Family Policy
7
Both the federal government and mainstream public opinion accept that the model of a traditional nuclear family, defined by stable and clearly divided gender roles, cannot be seen as the reality for all families in the 21st century. Access for married women to the labor market is not seriously disputed. Nevertheless, the provision of childcare is still overwhelmingly left to families themselves, which de facto means that primary responsibility is left to mothers. Public childcare centers exist, but – despite some recent improvements – fail to satisfy demand. Childcare facilities for children aged one and under are often lacking outside the capital Vienna, while facilities for children aged two to five often do not manage to serve working parents’ needs. Thus, the disproportionate burden borne by women within Austrian families is seen as an aspect of de facto gender discrimination. In addition, Austrian welfare transfers for mothers are designed in a way that keeps mothers out of the labor market, an outcome that stands in stark contrast to those associated with policies promoting in kind allowances. In numerous cases, legal provisions for the protection of parents, such as job protection for parents 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 64.1% in 2010 to 67.7% in 2020, although this rate is considerably lower than that for employed fathers (nearly 91%). Moreover, in 2020, 72.3% of all employed women with at least one child worked part time, while only 7.3% of fathers worked part time. In 2020, nearly 91% of all employed single parents were mothers. Meanwhile, 71.3% of all single mothers, but only 67.2% of mothers living in a partnership, were employed.

Regarding “childcare enrollment, age 0–2,” Austria now ranks in the lowest third of OECD countries. The score for 2020 marked a slight improvement on the previous period under consideration (2017–19), but is lower than in 2015. A similar pattern and evolutionary dynamic can be observed concerning “childcare enrollment, age 3–5.” However, in this sector, Austria currently ranks just in the upper half of OECD countries.

The country’s suboptimal performance at this level has also come to be reflected in the fertility age of Austrian women – with Austria ranking top of the lowest quarter of OECD countries (30 out of 41 countries). Austria’s score for 2019 (1.46) was the lowest since 2015, but still slightly better than for the period 2010–13 (with scores between 1.43 and 1.44). Child poverty increased only slightly, but the score for 2020 was the worst since the early years of the 21st century.

While more particular assessments of the effects of the coronavirus pandemic on single mothers in Austria are lacking, early exploratory studies strongly suggest that the pandemic most likely aggravated the already difficult status of single mothers, despite the various extra benefits for single parents provided by the government.

Citations:
https://www.statistik.at/web_de/presse/125929.html

file:///C:/Users/c4021008/Downloads/BMSGPK_Analyse_der_sozialen_Lage_Alleinerziehende.pdf

Pensions

#20

To what extent does pension policy realize goals of poverty prevention, intergenerational equity and fiscal sustainability?

10
 9

Pension policy achieves the objectives fully.
 8
 7
 6


Pension policy achieves the objectives largely.
 5
 4
 3


Pension policy achieves the objectives partly.
 2
 1

Pension policy does not achieve the objectives at all.
Pension Policy
6
Austria has long been considered “a heaven for retirees.” Indeed, poverty among senior citizens is low by comparative standards. The retirement age also continues to be low by comparative standards, particularly if the focus is on the actual retirement age (in contrast to the formally set retirement age of 65 for men and 60 for women). The formal retirement age for women was raised several years ago and will continue to increase incrementally to 65 by 2033.

One marked bias within the system concerns the advantageous situation of retired public sector employees (Beamte) compared to retired private sector employees. The representatives of public sector employees argue that top incomes cannot be earned in the public sector. In contrast, the representatives of private sector employees argue that the higher degree of job security in the public sector does not justify the current differences in pensions.

Another bias concerns the average pension entitlements of women and men. In Austria, female retirees currently receive about 40% less than their male counterparts, which means a significantly larger gender gap than in most other countries. (The reported average for OECD countries in 2020 was about 26% less).

Overall, the current system can be characterized as generous, but rather expensive. The pension insurance contributions of employees is currently set at 22.8% of gross income, which is high by international standards. Nevertheless, nearly one-third of overall pension costs are paid for by the taxpayer. Population aging will force the Austrian government to adopt reforms. The already high contribution rate cannot be further increased, so adjustments to the pension level and retirement age are the only instruments at hand.

Similar to previous governments, the ÖVP-Green government has not withstood the temptation to keep a large proportion of retirees happy by increasing their entitlements and particularly those with smaller pensions in 2021. Continuing a practice common to previous (often SPÖ-led) governments, pensions of less than €1,300 per month were not increased by 1.8%, but by up to 3%. As a consequence, the chair of the pensions commission, Walter Pöltner, stepped down in protest, arguing that the practice not only violated the “insurance principle” but also incurred unacceptably high costs for the next generation.

Citations:
https://www.wienerzeitung.at/nachrichten/wirtschaft/oesterreich/2116391-Was-das-Pensionssystem-ins-Wanken-bringt.html

https://kontrast.at/pension-frauen-weniger/

https://www.sn.at/politik/innenpolitik/walter-poeltner-tritt-als-chef-der-pensionskommission-zurueck-109736758

Integration

#33

How effectively do policies support the integration of migrants into society?

10
 9

Cultural, education and social policies effectively support the integration of migrants into society.
 8
 7
 6


Cultural, education and social policies seek to integrate migrants into society, but have failed to do so effectively.
 5
 4
 3


Cultural, education and social policies do not focus on integrating migrants into society.
 2
 1

Cultural, education and social policies segregate migrant communities from the majority society.
Integration Policy
5
When in the fall of 2015 a comparatively high number of refugees and/or migrants came to Austria for a brief period, society’s response seemed to go into the direction of a “welcoming culture.” Related reforms pointed in the same direction. Yet this more liberal approach ended in 2016.

Despite some remarkable efforts, the Austrian approach to integration remains deficient in two key ways. First, there is too little formal recognition that Austria is a country that has been and will continue to be defined by immigration. Second, compared to other EU member states, acquiring citizenship in Austria is complicated for non-nationals (despite popular cases involving prominent figures, such as opera performers, athletes and billionaires).

These shortcomings are reflected in education outcomes. Education in urban areas, and to a lesser extent rural areas, has to deal with the challenge posed by children of first-generation migrants, in school systems with constrained resources. This means that children from migrant families find it more difficult to qualify for higher education and are often stuck in the lowest types of school. This also heavily nourishes discontent of “native” Austrian parents with children in such schools, where successful educational outcomes are increasingly difficult to realize. Special support policies for such children have recently been put in place, but it remains to be seen how successful these policies will be in the short to medium term.

With respect to the labor market more broadly, the Austrian government is only halfheartedly welcoming employees newly arriving from foreign countries. Its policies (including the “red-white-red card”) are neither well received by economic actors nor are they succeeding in attracting highly skilled professionals. The indirect, undeclared alliance between organized labor (which defends the short-term interests of union-protected laborers, and is usually linked politically to the left) and the far-right (which exploits xenophobic resentments, especially in the case of the Freedom Party) creates a political climate that sometimes breaks into open hostility, particularly against migrants coming from Muslim countries.

The openly xenophobic rhetoric in recent Austrian policymaking, which characterized the ÖVP-FPÖ government (2017–19), has been abandoned. However, widespread expectations that the participation of the Greens in the governing coalition would mark a huge step forward in integration policymaking have not been met. The current ÖVP-Green government is the first federal government to include a full minister for integration. However, the office has been controlled by the ÖVP, not the Greens.

The impact of the coronavirus pandemic hit migrants in Austria harder than the country’s non-migrant population. For example, while unemployment among Austrian citizens in 2020 increased from 6.4% to 8.4%, the rate of unemployment among migrants increased from 10.8% to 15.3%.

More generally, in a survey among migrants in Austria conducted in April 2021, 48.3% of respondents with a migration history from Bosnia, Serbia or Turkey stated that they had been occasionally or more often discriminated against because of their origin.

Citations:
https://www.migration-infografik.at/at-asylstatistiken-2021/

file:///C:/Users/c4021008/Downloads/integrationsbericht2021.pdf

https://de.statista.com/statistik/daten/studie/918456/umfrage/diskriminierungsgefuehl-von-migranten-in-oesterreich/

Safe Living

#7

How effectively does internal security policy protect citizens against security risks?

10
 9

Internal security policy protects citizens against security risks very effectively.
 8
 7
 6


Internal security policy protects citizens against security risks more or less effectively.
 5
 4
 3


Internal security policy does not effectively protect citizens against security risks.
 2
 1

Internal security policy exacerbates the security risks.
Internal Security Policy
8
Internal security is well protected in Austria. All available indicators depict Austria as a rather secure country. Criminal statistics clearly show that the overall security Austrians enjoy is stable and comparatively high. As government reports for 2020 indicate, in many fields, the overall number of crimes committed has been decreasing. This is particularly true for burglaries, with more people working from home as a result of the pandemic. At the same time, cybercrimes increased by 26.3% between 2019 and 2020.

Police budgets and personnel numbers rose again in 2020 and 2021, which indicates that the police are viewed as an appropriate instrument for providing internal security. There has also been a reasonable willingness among recent Austrian governments to engage in cross-border cooperation.

Survey-based research clearly indicates that Austrians felt rather safe in 2020 and considerably safer than in previous years.

Citations:
Stats from the interior ministry: https://bundeskriminalamt.at/501/files/PKS_18_Broschuere.pdf

https://bundeskriminalamt.at/501/files/PKS_2020_HP_20210412.pdf

https://ifes.at/sites/default/files/downloads/sicherheitsmonitoring_2020_keynote_0.pdf

Global Inequalities

#23

To what extent does the government demonstrate an active and coherent commitment to promoting equal socioeconomic opportunities in low- and middle-income countries?

10
 9

The government actively and coherently engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. It frequently demonstrates initiative and responsibility, and acts as an agenda-setter.
 8
 7
 6


The government actively engages in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. However, some of its measures or policies lack coherence.
 5
 4
 3


The government shows limited engagement in international efforts to promote equal socioeconomic opportunities in low- and middle-income countries. Many of its measures or policies lack coherence.
 2
 1

The government does not contribute (and often undermines) efforts to promote equal socioeconomic opportunities in low- and middle-income countries.
Global Social Policy
5
Austria often gives rhetorical support to agendas seeking to improve the global social balance. However, when it comes to actions such as spending public money to improve development in developing countries, Austria has been notably slow to fulfill its promises. In the projected budget for 2022, international development aid was one of the few sectors in which spending was not scheduled to increase. Actual spending remains more than 50% below the agreed 0.7% ratio, despite the growing coronavirus-related misery in many parts of the world.

At the EU level, Austria continues to block any attempts (e.g., by the European Commission) to develop a binding Common European Refugee Policy. After the latest major episode concerning refugees from Afghanistan, the Austrian government received substantial criticism for its strikingly uncompromising policies.

Regarding Austrian debates about migration and refugees, most commentators argue that the best way of dealing with “mass migration” to Europe (including Austria) is to improve the conditions of migrants in their home countries. But with the exception of some of the smaller parties – in particular NEOS and the Greens – no political actors have dared to promote costly Austrian activities to improve living conditions, for example, in Africa. However, even the participation of the Greens in the current coalition government, which assumed office in early 2020, has not been followed by a major change of course in Austria’s public policymaking in the areas concerned. Nevertheless, the Greens achieved some improvements, such as the significant increase of payments into the fund for foreign disasters (Auslandskatatstrophenfonds) in 2021.

Interim assessments of Austria’s progress in implementing the United Nation’s SDGs and Agenda 2030 drew a rather bleak picture. The European Parliament’s official report from 2019 highlighted Austria as one of the few countries “with no or no clear monitoring framework so far.” Furthermore, the report identified Austria and Bulgaria as the only countries “that have not signaled any of the three strategic tools for knowledge input.” Finally, the report stated that Austria was one of just three (out of a total of 28) countries in which “national parliaments have no recognizable activities or plans.” Some progress has since been achieved, though there remains much room for improvement.

Citations:
https://www.derstandard.at/story/2000129463097/faktencheck-wie-viel-geld-oesterreich-fuer-hilfe-vor-ort-ausgibt

https://orf.at/stories/3226907/

https://www.parlament.gv.at/PAKT/PR/JAHR_2021/PK0182/

https://www.europarl.europa.eu/cmsdata/160360/DEVE%20study%20on%20EU%20SDG%20implementation%20formatted.pdf

https://awblog.at/agenda-2030-sdgs-rueckstand/
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