Efficiency of Austrian Family Policy

In an international comparison Austrian family subsidies are very generous. While benefits from the various schemes add up to about 10 percent of national income there is still a considerable poverty risk for bigger families, since funds disbursed are not subject to a meanstest. A reform to be introduced in 1993, while further raising the level of benefits, will not significantly reduce the poverty risk which could only be brought about by reinforcing social criteria for the distribution of benefits.