Redistribution by the State: Heterogeneity by Household Type

In the first half of the 2010 decade the inequality of income in Austria decreased slightly both before and after the redistributive effects of direct and indirect taxes, social contributions as well as monetary and in-kind public transfers. This was the result of opposing developments in households with different socio-demographic characteristics. The income position of households with main earners aged 45 years and over without dependent children improved relative to the other households both before and after accounting for redistribution. By contrast, younger households with dependent children experienced substantial downward shifts in the distributions of market and post-redistribution income. Their risk-of-poverty increased whereas that in households with main earners aged 66 years and over decreased markedly. The incomes of the households of different type did not only develop in opposite directions relative to each other but also in absolute and relative terms. The working of automatic stabilisers as well as their alteration due to socio-demographic developments resulted in an increase in the extent of redistribution.