Research
Research
Research papers
The Good Council: Deliberating inequality in a field experiment. (joint with Franziska Disslbacher, Martin Haselmayer, Lukas Lehner, and Franziska Windisch)
Abstract
This paper investigates how participation in a citizens' assembly affects individuals' redistributive preferences and (perceived) role in democracy. We implement a pre-registered field experiment embedded in a real-world citizens' assembly on wealth inequality in Austria. Using a three-group-design comparing assembly participants, non-selected volunteers, and a population sample, we isolate the causal effects of taking part in a citizens' assembly from self-selection into participation. We find that while participating in the citizens' assembly substantially improves factual knowledge about the wealth distribution and promotes convergence around specific tax policy proposals, notably a EUR 1 million allowance, it has no measurable effect on political efficacy or broader civic engagement. We also document significant political self-selection: individuals willing to participate in the citizens' assembly were already more engaged and supportive of redistribution than the general population. These findings suggest that while deliberative formats can foster informed convergence on policy proposals, their ability to mobilize broader publics is limited -- especially if they primarily engage the already supportive and, as in this case, lack institutional anchoring that might facilitate spillover into more institutionalized political arenas.
Do biased perceptions of wealth distribution affect savings behavior?. (joint with Pirmin Fessler)
Abstract
We estimate the relationship between people's biased perceptions of their rank in the wealth distribution and savings behavior. Using survey data from Austria, we show that there is a relationship between misperceptions and savings that is statistically significant at least at the 5% level. A one-decile downward deviation in perceived rank, relative to one’s decile based on observed wealth, is associated with a 5\% increase in the savings rate evaluated at the mean (predictive estimate). When using an instrumental variables approach, the estimated effect increases substantially to 18%. Preferences that feature relative wealth in the utility function can explain this relationship. Our findings inform contemporary macroeconomic models and have important implications for policy.
Leaving legacies and liabilities: The distribution of wealth at death. (joint with Franziska Disslbacher)
Abstract
This paper leverages novel administrative data on terminal wealth in Vienna to show that Gini indices of wealth inequality at death exceed unity, with 20-30% of decedents leaving behind debt. We analyze the drivers of this distribution, finding that the drivers of terminal wealth (distribution) are different from determinants of wealth (inequality) among the living. Life- cycle effects have limited explanatory power. In contrast, bequest motives are associated with higher wealth and a marginal increase in the share of decedents that reveal preferences on post-mortem resource allocations reduces inequality. Homeownership also correlates with higher wealth (the reverse is true for care-home residency), though housing wealth does not benefit the bottom of the distribution across districts. Finally, means-tested long-term care transfers significantly amplify terminal wealth inequality.
Journal publications
Economies of Scale for Household Wealth: An Analysis of Equivalence Scales, Review of Income and Wealth, 2025, 71 (1), e70002.
Abstract
Measures of private wealth are often available only at the household or tax-unit level. But how does household wealth map into individual welfare? Analogous to household economies of scale for consumption, I argue that there are economies of scale to household wealth. This paper is the first to offer a methodology and empirical results to account for household wealth scale effects based on wealth-in-utility preferences. I propose economies of scale that differ by accumulation purpose – funding consumption as opposed to holding wealth for status or bequest motives (non-consumption). Presenting estimates of scale effects derived from stated preference data in the German Socio-Economic Panel (SOEP), I find that non-consumption economies of scale are almost perfect. In addition, the paper offers an empirical application to inequality measurement. Since non-consumption wealth matters primarily among wealthy households, adjusting household wealth for size primarily affects less affluent households, feeding into higher estimates of inequality. For example, the Palma ratio for Germany increases by up to 18% once scale effects are taken into account, and the Gini index by 3%. Beyond providing parameter estimates for a wealth-in-utility model with household size, the results have relevant applications in the measurement of inequality and optimal taxation.
Wealth and Welfare: Do Private and Public Safety Nets Compensate for Asset Poverty?, Social Inclusion, 2023, 11 (1), 176–186.
(joint with Stefan Humer)
Abstract
Economic shocks test the resilience of families around the world. Lockdowns, extended periods of unemployment, and inflation challenge the capabilities of private households to maintain their living standards whilst keeping their budgets in balance. Asset poverty is a concept invoked frequently to measure the capacity of private households to mitigate income loss by relying exclusively on their savings. In contrast to conventional asset poverty measures, we quantify the combined cushioning effect of private and public safety nets. Highlighting the importance of public safety nets and familial networks, this paper devises a modified concept of asset poverty: rather than purely simulating a household’s asset decumulation without replacement income, the modified indicator accounts for replacement income in a static setting. The empirical assessment of modified asset poverty in Europe and America combines harmonised microdata on household finances with simulations of institutional rules set by social insurance systems. Our results reveal how differences in social relations and institutional rules shape cross-country variation in the vulnerability of private households. We find that, in contrast to the US where the asset poverty of US families is particularly low, households in most European countries are less vulnerable because generous social security systems coexist with low private assets. However, in some European countries, benefit generosity decreases the longer income losses last, exposing time dynamics in vulnerability. Complementing social insurance mechanisms, in countries such as Greece, households are more likely to receive financial support from family or friends. Cross-national heterogeneity in vulnerability suggests that a shock may have different implications across countries.
Book Chapters
Armut, Soziale Ausgrenzung und Wohnen [Poverty, Social Exclusion and Housing], Soziale Lage und Sozialpolitik in Österreich, 2023, 24. (joint with Karin Heitzmann)
Abstract
Against the background of multiple crises, welfare states face increasing challenges in maintaining living standards and combatting poverty. This contribution reviews the evidence with respect to poverty (risk) and homelessness in Austria, while assessing welfare state change in the past decade. It supplements traditional income-based measures with a discussion of material indicators of poverty, and discusses the important role of living costs and housing for the analysis of poverty in particular. Overall, the analysis highlights the need for policy-makers not only to rely on employment as a poverty reduction strategy, but also to ensure wage growth and the provision of basic goods and services to keep the cost of living moderate.
Research reports and other publications
Parenting on a budget: The cost of raising children in changing family configurations and its policy implications, OECD Papers on Well-being and Inequalities, 2025, No. 36
(joint with Olivier Thévenon)
Abstract
This paper examines how the diversity of family configurations and living arrangements impacts the cost of raising children in OECD European countries. It uses data from the European Household Budget Surveys and the European Surveys of Income and Living Conditions, including the 2021 ad hoc module on family arrangements. The analysis explores the impact of factors such as the number, age, and presence of ‘non-resident’ children on the cost of raising children. The paper highlights the complementary nature of information from household expenditure data and self-reported ability to make ends meet, especially in characterising the situation of particularly vulnerable households. For example, single-parent households in several countries struggle to make ends meet, reporting greater difficulties than the cost suggested with the share of household budgets estimated to be spent on children. Moreover, non-resident children, such as those in shared custody arrangements impose financial burdens on "non-custodial" households. Gathering more detailed information on family structures and living conditions is essential for accurately estimating the costs associated with children in shared or fully non-residential living arrangements. Additionally, this approach provides a clearer understanding of the impact of these arrangements on financial hardship, particularly for single-parent households.
Reichtum, Natur und Wilder Westen [Wealth, Nature and the Wild West], Wirtschaft und Gesellschaft, 2023, 49 (3), 129-133.
Abstract
The book "Billionaire Wilderness" by Justin Farrell explores the reasons and consequences of extreme wealth in Teton County, the U.S. county with the highest income inequality. It shows how elites use nature conservation to expand their privileges and adopt romanticized notions of local culture for personal fulfillment. The author emphasizes the importance of nature preservation for wealth accumulation. Additionally, the book sheds light on the psychological conflicts of the super-rich in their quest for authenticity. Interviews with the local population provide contrasting perspectives on the impacts of extreme wealth. Farrell delves into the political and societal institutions that make a region in the "Cowboy State" of Wyoming a magnet for extremely privileged individuals and families, while also outlining potential solutions to mitigate the consequences of inequality.
Asset Bias in Household Needs Measurement, INEQ Working Paper Series, 2021, No. 22
Abstract
Increasingly, the estimation of household equivalence scales relies on subjec-tive data. This approach challenges not only traditional methodology, but alsoprovides systematically lower estimates of household needs compared to othermethods. I offer a novel take on this puzzle and argue that the failure to accountfor private wealth in subjective measurement is part of the explanation of whyhousehold financial needs appear to be low. Wealthy survey respondents claimto be satisfied with less income, as they can draw on their asset buffer to main-tain a given living standard. Capitalising on SOEP survey data, I find that thefinancial needs of a household comprising five members relative to a referencehousehold might be underestimated by up to 20% if wealth is not accountedfor. Equivalence scales are central to poverty and inequality measurement, thedesign of social transfer systems and many other applications. Therefore, it iscrucial to account for asset ownership when drawing on estimates that rely onthe subjective methodology.
Vermögen in Wien. Ungleichheit und Öffentliches Eigentum [Wealth in Vienna. Inequality and public ownership], City of Vienna Municipal Department No. 23, 2021
(joint with Robert Lasser, Vanessa Lechinger and Cara Dabrowski)
Abstract
The distribution of wealth is a central object of interest in both academics and policy-making. While much research on wealth focuses on the national level, this paper provides insights on the sub-national level, providing evidence on wealth inequality in Vienna in a comparison with other Austrian regions. Based on regionally stratified data from the Austrian Household Finance and Consumption Survey (HFCS), the analysis makes three main contributions. Firstly, in addition to vertical inequality, we explore disparities in household wealth across different types of households and between men and women at the subnational level. Secondly, the paper develops a concept of augmented wealth, which adds housing wealth held by the non-profit sector (municipal housing, housing associations, …) to the private wealth of households that benefit most from it. Lastly, we study the relationship between our measure of augmented wealth and life satisfaction. While overall wealth inequality is much higher than income inequality in Austria, the paper finds that the distribution of wealth is particularly dispersed in Vienna relative to the rest of the country. However, focusing on housing-augmented wealth attenuates the regional differences. When turning to the relationship between housing-augmented wealth and subjective satisfaction outcomes, the article shows a positive association between the augmented component of wealth and life satisfaction. Given the important quantitative implications of our augmented wealth measure in cross-regional comparisons and its association with wellbeing-outcomes, the findings point towards the importance of exploring different concepts of wealth in wealth research.
Kinderkosten - Berechnungsmethoden & Bandbreiten [The cost of children. Methods and bandwidths], City of Vienna Municipal Department No. 40, 2020
(joint with Stefan Humer)
Abstract
How much resources do families with children need relative to childless households? Which methods are suitable to measuring such costs of children? These questions are highly relevant, not at least when it comes to calibrating the generosity of public transfers, such as means-tested minimum income schemes. This paper reviews the vast literature on the cost of children and equivalence scales, highlighting the blind spots of scholarship and summarising the empirical estimates of child-costs in Austria. We begin with an assessment of a number of methods applied to compute the costs of children, showing that no single approach outperforms the others in all dimensions. In view of their theoretical foundations, the most popular approaches in Austria are subject to criticism in the international literature. Given the broad variety of methods, we argue that the purpose of the analysis is crucial to the choice of the methodological approach. The costs of children computed for assisting prospective families with their financial planning will be an ill-suited evidence-base for the design minimum income schemes. The meta-analysis of the costs of children in Austria suggests that the needs of the first child range between one and two thirds of an adult’s needs. At the same time, the evidence for the existence of economies of scale is ambiguous. Constructing bandwidths for child costs shades the diversity of the results, shaped by different methodological approaches. Deriving costs in currency units crucially depends on the assumptions made regarding the reference value of the needs of childless households. Looking forward, our results point out that future attempts to compute the costs of children should pay particular attention to capturing the living conditions of single households, multigenerational households and patchwork families. At the same time, research needs to address the heterogeneous needs of households along the income distribution. Lastly, scholarship should consider how to combine approaches and synthesise results appropriately to produce more accessible and user-friendly statistics.
Entwicklung und Verteilung von Lebenshaltungskosten in Österreich [Development and distributional impact of inflation], Austrian Federal Ministry for Work, Social Affairs, Health and Consumer Protection, 2018
(joint with Stefan Humer)