Arbeitspapier

Is the welfare state sustainable? Experimental evidence on citizens' preferences for redistribution

The sustainability of the welfare state ultimately depends on citizens' preferences for income redistribution. They are elicited through a Discrete Choice Experiment performed in 2008 in Switzerland. Attributes are redistribution as GDP share, its uses (the unemployed, old-age pensioners, people with ill health etc.), and nationality of beneficiary. Estimated marginal willingness to pay (WTP) is positive among those who deem benefits too low, and negative otherwise. However, even those who state that government should reduce income inequality exhibit a negative WTP on average. The major finding is that estimated average WTP is maximum at 21% of GDP, clearly below the current value of 25%. Thus, the present Swiss welfare state does not appear sustainable.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 3148

Klassifikation
Wirtschaft
Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
Field Experiments
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Taxation and Subsidies: Other
Thema
income redistribution
welfare state
sustainability
preferences
willingness to pay
discrete choice experiments
Sozialstaat
Einkommensumverteilung
Staatsquote
Willingness to pay
Diskrete Entscheidung
Test
Schweiz

Ereignis
Geistige Schöpfung
(wer)
Neustadt, Ilja
Zweifel, Peter
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2010

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Neustadt, Ilja
  • Zweifel, Peter
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2010

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