ABSTRACT
This chapter explores the changing paradigm that characterises the workings of labour market institutions and the shifting boundaries of social inclusion in the localised welfare system of Vienna. We argue that the decentralisation process that took place in the early 1990s has enabled Viennese regional policy makers to formulate innovative solutions to structural problems and broaden their policy outreach to a wide range of disadvantaged social groups. As a result of their regulatory autonomy, regional actors in Vienna have been able to complement national policies and develop inclusive programmes to address external pressures.
