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.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Income redistribution, preferences, willingness to pay, discrete choice experiments, conjoint analysis, social status, immigration debate, insurance motive.
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C35 - Discrete Regression and Qualitative Choice Models ; Discrete Regressors ; Proportions; C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C93 - Field Experiments; D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H29 - Other

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