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Redistribution in Whose Favor? Preferences with Regard to Nationality and Type of Beneficiaries

Neustadt, Ilja and Zweifel, Peter (2018): Redistribution in Whose Favor? Preferences with Regard to Nationality and Type of Beneficiaries.

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Abstract

In this paper, we elicit preferences for the allocation of income redistribution to different uses through a Discrete Choice Experiment performed with a representative sample of Swiss citizens. The total desired amount of income redistribution is estimated as a share of disposable income. Further, we estimate marginal willingness-to-pay values for recipients' nationalities (Swiss, citizens of western European countries, citizens of other countries) as well as their types (old-age pensioners, people with ill health, the unemployed, working poor, and families with children). Swiss citizens are found to have a positive willingness to pay for a reallocation of social expenditure in favor of themselves or Western European citizens to the detriment of citizens of other countries, who are perceived to be culturally distant.

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