OECD Economic Surveys - Austria 2017.

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Table of contents Basic statistics of Austria, 2016 Executive summary Growth has picked up but fundamentals should be strengthened Growth is regaining momentum Austria’s transition towards digitalisation has been lagging Share of firms using cloud computing, 2016 Changing demand for skills affects equality of opportunity Adults with advanced digital proficiency Assessment and recommendations Growth is picking-up and digitalisation brings new challenges and opportunities Figure 1. Well-being is high Figure 2. Redistribution plays an important role Box 1. Considering the tax-and-benefit system as a whole Figure 3. Divergences in life satisfaction Figure 4. The low-educated face special pressures Figure 5. Migration inflows have fostered labour supply Figure 6. Job tenure is long and geographic mobility low Growth is picking up Figure 7. Austria’s market share in main export destinations Figure 8. Recent developments Table 1. Macroeconomic indicators and projections Table 2. Possible shocks and their economic impact Figure 9. Evolution of macro-financial vulnerabilities since 2007 Macroeconomic policy has been supportive Fiscal policy is being used more actively Figure 10. Fiscal balances have improved but debt remains high Box 2. The January 2017 policy package Box 3. Implementation of a fiscal initiative in the European context Figure 11. Long-term fiscal pressures arising from ageing are high Figure 12. The public debt path is highly uncertain Deeper fiscal reforms should be a policy priority Figure 13. Revenue and spending structures offer room for reform Further rationalisation is desirable in the financial sector Figure 14. Bank profitability and capital adequacy are relatively low Box 4. Capacity adjustments in the banking sector Figure 15. Monetary policy transmission operates well but there are signs of friction Raising medium-term growth Figure 16. Potential growth has weakened Figure 17. Participation increased but mainly in part-time jobs Table 3. Past recommendations to promote gender equality and actions taken Fostering innovation and productivity Figure 18. Labour productivity growth by sector Table 4. Past recommendations to promote growth Figure 19. Retail and professional services remain over-regulated Seizing opportunities and addressing the challenges arising from digitalisation Box 5. Austria’s “Digital Roadmap” Digitalisation as a new frontier Figure 20. Advanced digital infrastructures are less used in Austria Figure 21. Enterprises lag behind peers in most ICT applications Figure 22. The overall degree of digitalisation is behind its expected level Figure 23. Small firms display distinct weaknesses in ICTs Figure 24. ICT adoption gaps between population groups: the case of e-commerce Managing the labour market and social consequences of digitalisation Figure 25. Differences in skills use at work between Austria and peer countries Figure 26. The adult population’s digital proficiency is lower than in peer countries Challenges for green growth Figure 27. Green growth indicators: Austria Bibliography Annex. Progress in structural reform Promoting growth Promoting gender equality Thematic chapters Chapter 1. Austria’s digital transition: The diffusion challenge Austria is in an intermediary position in the digital transition Figure 1.1. Austria in the international digital transition Figure 1.2. Austria is an innovation leader in e-government but diffusion is slow among households Box 1.1. Special economic impacts of digitalisation Convergence with the global technological frontier is uneven across sectors and firms Figure 1.3. ICT usage across industries Figure 1.4. Machine-to-machine mobile cellular subscriptions Digitalisation trends in the business sector The generalisation of ICT applications in the business sector is slower than in peer countries Figure 1.5. Broadband connectivity Figure 1.6. Digital marketing Figure 1.7. Digital management Figure 1.8. Cloud computing Three factors foster diffusion in the business sector Figure 1.9. The adult population’s digital problem solving proficiency is lower than in peer countries Figure 1.10. Too few Austrians have advanced digital skills Figure 1.11. Austria’s position in ICT-specialist skills Figure 1.12. Austrian firms’ work processes are less information-intensive Figure 1.13. The organisation of ICT functions in firms differs from peer countries Figure 1.14. Firm demographics may be affecting the modernisation of business models Box 1.2. The Open Innovation Strategy and digitalisation-oriented programmes Box 1.3. Hagenberg Software Park Digitalisation trends in households The generalisation of digital innovations in households is slower than in peer countries Figure 1.15. Broadband connectivity of households Figure 1.16. Average advertised download speeds Figure 1.17. Use of computers and internet by households Figure 1.18. Specific internet applications used by households Factors influencing the adoption of digital innovations in households Figure 1.19. Influence of age Figure 1.20. Influence of education Figure 1.21. Influence of gender Figure 1.22. Influence of immigration origin Public strategies to foster digital transition call for broad social support Recognising the employment and social cohesion challenges of digitalisation Upgrading skills Renewing business models Promoting more competitive digital markets Reinforcing the broadband infrastructure Figure 1.23. Fibre subscriptions among countries Generalising e-government innovations Fostering bottom-up innovations Box 1.4. Airbnb and Uber in Austria: Vienna’s approach to the “sharing” economy Improving trust and consumer protection Digital Europe, digital world Recommendations to facilitate ICT diffusion Bibliography Chapter 2. Inclusive labour markets in the digital era The future of work Facing automation anxiety Figure 2.1. Change in employment shares between 1998 and 2015 Figure 2.2. Employment rates in Austria by age and level of education Figure 2.3. Automation will affect a large share of jobs Figure 2.4. Estimated effect of skill use at work on automatibility of jobs Figure 2.5. Differences in skills use at work between Austria and peer countries Figure 2.6. “Bright outlook occupations” in the United States Figure 2.7. Share of “bright outlook occupations” by educational attainment Integrating new forms of work Box 2.1. Statutory differences between non-standard and standard work Redistributing the gains of digitalisation Figure 2.8. Structure of general government revenues Figure 2.9. The tax-and-transfer system is strongly redistributive Getting skills right Developing basic digital skills and raising awareness of digital gaps Figure 2.10. Many 15-year-olds lack basic scientific skills Box 2.2. Education reform 2015 Figure 2.11. Attitudes towards science Figure 2.12. Problem-solving by educational attainment Ensuring diversity and responsiveness of educational tracks Figure 2.13. Status of the 20-24 year-olds Figure 2.14. Upper secondary enrolment rates of 15-19 year-olds Figure 2.15. Time to first employment by type of education Figure 2.16. Median monthly earnings by type of educational track Promoting life-long learning solutions Figure 2.17. Participation rate in education and training Box 2.3. Singapore’s SkillsFuture programme Using skills effectively in the labour market Activating and retaining skilled people Figure 2.18. Employment by gender and age of youngest child in household Figure 2.19. Employment rates of 55-64 year olds Figure 2.20. Educational attainment and labour market status by place of birth Reducing skill mismatches Figure 2.21. Field-of-study mismatch by field and occupational group Box 2.4. Labour market mismatch: evidence from PIAAC Figure 2.22. Policy reforms can reduce skills mismatch Adapting work organisation and management practices Figure 2.23. Differences in the use of ICT at work Figure 2.24. Difference in the prevalence of learning and flexibility at work Recommendations for inclusive labour markets in the digital era Bibliography