Austria: Selected Issues

International Monetary Fund

No 2013/281, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper focuses on Austria’s 2013 Article IV Consultation on economic development and policies related to labor demand and supply. Austria taxes labor heavily, and this practice explains in particular the limited labor supply of low-skilled workers and women. The IMF report highlights that social security contributions and payroll taxes amount to almost 50 percent of gross monthly wages. It analyzes that a comparatively high share of Austria’s family benefits is monetary rather than in kind. Work incentives for low-skilled workers could be strengthened by selectively lowering social security contributions and/or payroll taxes, and reducing the entry income tax rate.

Keywords: ISCR; CR; family benefit; amount; incurred child care cost; cost; share; work incentive; OECD member; family benefit system; Euro area average; entry income tax tax rate; Personal income; Labor taxes; Social security contributions; Income tax systems (search for similar items in EconPapers)
Pages: 10
Date: 2013-09-10
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