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Changing Inequalities and Societal Impacts in Rich CountriesThirty Countries' Experiences$
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Brian Nolan, Wiemer Salverda, Daniele Checchi, Ive Marx, Abigail McKnight, István György Tóth, and Herman G. van de Werfhorst

Print publication date: 2014

Print ISBN-13: 9780199687428

Published to Oxford Scholarship Online: April 2014

DOI: 10.1093/acprof:oso/9780199687428.001.0001

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Austria—The Bastion of Calm? Stability and Change in Inequalities in Times of Welfare State Reforms and Employment Flexibilization

Austria—The Bastion of Calm? Stability and Change in Inequalities in Times of Welfare State Reforms and Employment Flexibilization

Chapter:
(p.71) Chapter 4 Austria—The Bastion of Calm? Stability and Change in Inequalities in Times of Welfare State Reforms and Employment Flexibilization
Source:
Changing Inequalities and Societal Impacts in Rich Countries
Author(s):

Roland Verwiebe

Tobias Troger

Laura Wiesböck

Roland Teitzer

Nina-Sophie Fritsch

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199687428.003.0004

Income inequality among households is much less pronounced in Austria than in most other OECD countries. A detailed look on inequality dynamics reveals a moderate increase in household income inequality, a more pronounced increase in wage inequality, and decreasing returns to education. However, the recent economic crisis has had social consequences in particular concerning material deprivation, which has been growing in the last years. The development of income inequality in Austria has to be seen in the context of growing unemployment which nonetheless remained at comparatively low levels, a moderate flexibilization of the labour market, and a Bismarckian welfare state which has undergone multiple restructurings but continues to have a highly redistributive effect. On the level of attitudes and values we can identify a highly visible and further growing criticism towards social inequalities. Political and civic participation have been decreasing, while trust in institutions has declined among people from lower social strata.

Keywords:   income inequality, wage inequality, returns to education, Austria, social impacts, poverty, political participation, political influence, redistribution, flexibilisation

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