Family Policy in Austria: Status Quo and Cornerstones of Timely Reforms

The study presents the most important effects and deficits of current Austrian family policy. Firstly, an overview is given about the tax and transfer provisions relevant for families. Hereby the study focuses on monetary transfers (direct monetary transfers as well as tax exemptions for families), and on in-kind transfers (day care for children). Then the most important instruments of family policy applied in Austria are compared to the family policy mix in Germany, France, Denmark, Sweden, the Netherlands und the OK – countries belonging to a certain welfare state model in general and a specific model of family policy in particular. Finally important effects of Austrian family policy – also in an international comparison – are identified: horizontal and vertical redistribution, prevention and reduction of children's poverty, mothers' employment, division of labour within families with regard to paid and unpaid work as well as fathers' engagement. This analysis is completed by a more detailed analysis of the incentives of the Austrian tax and transfer system for labour market participation of parents and the division of labour within families.