Cost-Shifting in Multitiered Welfare States : Responding to Rising Welfare Caseloads in Germany and Switzerland

Details

Serval ID
serval:BIB_8C23FF2744D6
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Cost-Shifting in Multitiered Welfare States : Responding to Rising Welfare Caseloads in Germany and Switzerland
Journal
Publius : The Journal of Federalism
Author(s)
Bonoli G., Trein P.
ISSN
0048-5950 (Print)
1747-7107 (Electronic)
Publication state
Published
Issued date
2016
Volume
46
Number
4
Pages
596-622
Language
english
Abstract
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.
Create date
23/08/2016 8:15
Last modification date
20/08/2019 14:50
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