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Cost-Shifting in Multitiered Welfare States

Responding to Rising Welfare Caseloads in Germany and Switzerland

Bibliographic Data

ID6375669
AuthorsGiuliano Bonoli (0000-0002-2832-0984), Philipp Trein (0000-0001-6217-6675)
Year2016
Volume46
Issue4
Pages596-622
Publication date2016-09-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenuePublius The Journal of Federalism (JOURNAL)
Journal identifiersISSN: 0048-5950 • E-ISSN: 1747-7107
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1093/publius/pjw022
OpenAlexW3122467412
LanguageEN
Citations received12
References cited22

In this article, we analyze if and how different levels of government off-load clients onto other welfare state programs that are not under their financial responsibility. We hypothesize that the extent to which cost-shifting takes place in a multitiered welfare state depends on the degree of fiscal centralization, and we expect cost-shifting to be more prevalent in federal countries where the constituent units have strong fiscal autonomy. In order to empirically examine this claim, we compare Germany and Switzerland, two federal countries that differ considerably in matters of fiscal centralization. Empirically, we find that in fact cost-shifting occurred irrespective of the degree of fiscal centralization. However, there are differences in how the two countries reacted to cost-shifting practices. Fiscally centralized Germany has been more successful in limiting cost-shifting practices than decentralized Switzerland. By connecting the literature on social policy and fiscal federalism, the article contributes to a broader understanding of the functioning of multitiered welfare states

Autonomy · Business · Decentralization · Economics · Federalism · fiscal federalism · Government (linguistics · Limiting · Market economy · Order (exchange · Political science · Public economics · Welfare · Welfare state · Fiscal Policies and Political Economy · Local Government Finance and Decentralization · Social Policy and Reform Studies · Finance

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Unique citing works12
Citations per year1,5
Citation span2018 - 2025 (8)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 12

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