Household wealth portfolios in Luxembourg in a comparative perspective

SCHEME: CORE

CALL: 2009

DOMAIN: LM - Challenges for the Educ.System,Labour Market,Social Protection incl. Territorial Aspects

FIRST NAME: Eva

LAST NAME: Sierminska

INDUSTRY PARTNERSHIP / PPP: No

INDUSTRY / PPP PARTNER:

HOST INSTITUTION: LISER

KEYWORDS: Wealth, Income, Distribution, Elderly, Immigrants, Well-being, Imputation

START: 2010-03-01

END: 2012-02-29

WEBSITE: https://www.liser.lu/

Submitted Abstract

With private assets playing an ever larger role in buffering life uncertainties as rich economieshave been experiencing a shift of risk from the State to the households brought about byrestraining welfare states and falling job security, there has been a renewed interest in thestudy and measurement of wealth. The aim of this proposal is to carry out research in the areaof wealth portfolio and wealth distribution analysis in Luxembourg in a cross-nationalperspective by exploiting a unique source of newly collected survey data among Luxembourgresidents (PSELL-3/EUSILC 2008). The project has one technical chapter and two substantivechapters. The technical part will involve processing the raw survey data collected in the field in2008 (incl. detailed treatment of partial non-response and measurement error) andharmonization according to the LWS model. In the first substantive chapter, we will study thesize and distribution of wealth (‘net worth’ — assets minus debts) and will analyze the jointdistribution of income and wealth in order to measure the extent to which the latter cansubstitute for the former to provide economic security. We study whether accounting for wealthand income jointly reveals a different pattern of social inequality than the traditional incomebasedapproach. In the second substantive chapter, we will examine the wealth portfoliocomposition in the country. The specific purpose of this analysis will be to assess thevulnerability of the population living in Luxembourg in the face of the financial crisis. Emphasisis put on potentially vulnerable populations by age, immigrant status and gender. Throughoutthe project, cross-national comparisons based on the Luxembourg Wealth Study will help putour results in an international perspective. In addition to providing policy findings, our researchwill make methodological progress. In particular, we will extend existing methods ofdistributional analysis to incorporate particular characteristics of wealth data (extreme andnegative values, zeroes, high skewness of the data) and we will propose a new statistical modelfor the joint distribution of income and wealth.

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