Monetary Income Distribution and Redistribution 2010 and 2015. WIFO Contribution to to Social Report 2015-2016

Whereas the gross market incomes of private households in Austria were slightly more unequally distributed in 2015 than in 2010, the distribution of disposable income (market income plus social benefits minus social contributions and income taxes) appeared to be less unequally distributed. The Gini coefficient in 2015 dropped from 0.53 for the gross household market income to 0.27 for the household disposable income. Generally, the comparison is characterised by a noticeably stable distribution of gross market incomes, pensions, income taxes and social contributions. Among the EU 15 countries, Austria together with the UK, Belgium and Finland stands out in that the disparity of disposable household income has slightly decreased in the crisis years 2010-2015. Nevertheless, the analysis also shows that the distribution of self-employed income has become considerably more inequitable, with increasing numbers of self-employed persons in the bottom third of the household income distribution. Moreover, as a result of rising and increasingly prolonged periods of individual unemployment, the number and concentration of persons receiving unemployment assistance has risen substantially in the lower third of the income distribution. On the revenue side, it is shown that the contribution from households in the lower and middle third of the distribution to the revenue from personal income tax and social contributions has increased. The income tax has become less progressive.