Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-51787
Neustadt, Ilja; Zweifel, Peter (2010). Is the Welfare State Sustainable? Experimental Evidence on Citizens' Preferences for Redistribution. Working paper series / Socioeconomic Institute No. 1003, University of Zurich.
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 bene?ciary. Estimated marginal willingness to pay (WTP) is positive among those who deem bene?ts too low, and negative otherwise. However, even those who state that government should reduce income inequality exhibit a negative WTP on average. The major ?nding 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.
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|Item Type:||Working Paper|
|Communities & Collections:||03 Faculty of Economics > Department of Economics
Working Paper Series > Socioeconomic Institute (former)
|JEL Classification:||C35, C93, D63, H29|
|Deposited On:||29 Nov 2011 15:09|
|Last Modified:||09 Jul 2012 05:00|
|Series Name:||Working paper series / Socioeconomic Institute|
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