Redistribution in Switzerland: Social Cohesion or Simple Smoothing of Lifetime Incomes?
AbstractUsing the example of Switzerland, this paper examines the extent to which the state and the social security institutions change the income distribution. Two sets of questions are examined: (1) Who benefits from the public services, and who bears the public costs? (2) To what extent does an annual redistribution involve redistribution (a) across households with different lifetime income, and (b) across different phases of life within the same households? Budget incidence analyses and pseudo panel procedures allow to compare annual and lifetime household incomes that arise before and after transfers. The results suggest that public interventions induce substantial redistribution, which is due primarily, however, to income-smoothing transfers within households and not to redistribution across households.
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Bibliographic InfoPaper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2010 with number 2010-02.
Length: 33 pages
Date of creation: Jan 2010
Date of revision:
Budget Incidence Analysis; Redistribution; Lifetime Income Smoothing; Pseudo Panel Procedure;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-23 (All new papers)
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