The asset contribution to residential care in Austria (Pflegeregress) has been abolished in January 2018, increasing the scope for higher use of social assistance and higher demand for residential care for older people. There is currently no empirical evidence on the distributional effect of this measure across the income and wealth distribution. There has also been limited evidence- based discussion about funding alternatives to the abolished asset contribution and their distributional effects, respectively. Finally, to this date, there is no reliable information on the financial gap arising from waiving the asset contribution. This study seeks to bridge these gaps. In doing so, it will make a significant and timely contribution to the current policy debate in Austria on the Pflegeregress. In addition, the findings of the study will contribute to the still nascent literature on inequalities in long-term care, while the methodology used could be replicated in other national contexts.
Anniversary Fund of the Austrian National Bank (ÖNB-Jubiläumsfonds)