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Additional info for OECD Economic Surveys 2003: Austria
While labour force participation for women is coming under pressure Female labour force participation is somewhat above the OECD average, and has increased over the last years. However, the change in the age distribution in Austria’s society would substantially reduce female labour force participation if age specific participation rates for women remain unchanged. While family support policies target a number of goals that might be considered non-economic, they also have an impact on female labour force participation and employment.
The low employment rate for older people is mirrored in an equally low labour force participation rate for the same age group, which stands at 29 per cent as opposed to 55 per cent at the OECD average. With fiscal pressure in the Austrian pension system mounting, the early retirement approach was partially revised, and measures were taken to curb entry into early retirement in the old age pension system. But there is still a perception in the society that economic growth is not high enough to prevent higher labour supply from translating into higher unemployment.
The effect of indirect taxes is not taken into account. Source: OECD, Taxing Wages. © OECD 2003 Recent macroeconomic developments and medium-term issues 39 significant factor behind the relatively strong employment growth observed within the EU, especially were the measures were targeted at low paid jobs. Aggregate real wage flexibility in Austria is high by international comparison. This has helped the economy to accommodate fluctuations in the business cycle while avoiding large fluctuations in unemployment.