Prof. Ulrich
Note for the readers of the supplementary materials
for online publication
The following slides are a translation of the original German guide that was handed out to the interviewers
who conducted the interviews. The information was also implemented on the notebooks that were used in
the computer assisted personal interviews.
The terminology was aimed at good comprehensibility by the general population. Whenever possible,
technical terms were avoided. The phrasing was tested in exploratory group discussions and several
pretests, starting with students and administrative university employees. For the final pretest random
individuals reflecting a wide societal range were recruited in the pedestrian area of a large German city.
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Prof. Ulrich
Guidance for the Discrete Choice Experiment:
Redistribution in Germany
Interviewer (please, read out the whole text loud and at the same time let the
respondents watch the screen):
• The political debate is consistently revolving around the redistribution of
income and wealth. With your participation you can help us answering one
central question:
Do the citizens want more or less redistribution?
•
•
In the following decision experiment you will be asked to consider different
redistribution alternatives. You are supposed to decide between the current
state (blue) and an alternative (red).
But do not worry, there exists no wrong or right decision.
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First, we would like to explain to you the structure of our social welfare system in the current
state (blue). Four aspects are important:
1. Personal tax and social insurance contributions
The individual tax and contribution rate is the share of your personal gross income that is
devoted to paying taxes and social insurance contributions. The resulting government revenues
are partially used for redistribution, i.e. to provide financial support to people in need (social
benefits).
Currently, on average 30 % of the individuals’ gross income is taken by the German state by
levying taxes and social insurance
contributions.
Persönliche Abgabenquote
This part of your income is shown on the next page at the top left corner!
30 % tax
and contributions
30%
your gross income
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Current state
Personal
tax and social insurance contributions:
Persönliche Abgabenquote
30 % tax
and contributions
30%
your gross income
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2. Total volume of redistribution
The total volume of redistribution refers to the amount of money that a country spends for social
benefits measured as percentage of the gross domestic product (GDP). At the moment, 30 % of
the gross domestic product in Germany is used to finance social benefits for needy persons. This
includes: sick people, retired persons, families with children, unemployed, working poor.
This share of 30% of GDP is pictured on the next page on the top right corner!
Gesamtes Umverteilungsvolumen
30 % for
redistribution
30%
GDP
Please note: The higher the total volume of redistribution, the more money is available for social
benefits.
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Current state
Personal
tax and social insurance contributions
Persönliche Abgabenquote
Total
of redistribution
Gesamtesvolume
Umverteilungsvolumen
30 % for
redistribution
30 % tax
and contributions
30%
30%
GDP
your gross income
Please note:
• Your personal taxes and contributions are only a part of the total
redistribution volume.
• Other taxes and employers’ contributions add to the total
government revenues.
• Your personal tax and contributions rate does not need to
correspond to the total redistribution volume.
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3. Types of beneficiaries
Of the total social benefits (30 % share of the gross domestic product (GDP)) about 40 % are
currently used for retirees, 35 % for sick people, 10 % for unemployed, 10 % for families with
children and 5 % for working poor.
This allocation is shown on the following page at the bottom left corner!
Art der Leistungsempfänger
working poor
families & children
10%
unemployed
5%
10%
40%
retirees
sick and
persons in
need of care
35%
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Current state
Personal
tax and social insurance contributions
Persönliche Abgabenquote
Total
of redistribution
Gesamtesvolume
Umverteilungsvolumen
30 % for
redistribution
30 % tax
and contributions
30%
30%
GDP
your gross income
Types of beneficiaries
Art der Leistungsempfänger
working poor
families & children
10%
unemployed
The higher the redistribution volume, the
more money can be distributed.
5%
10%
40%
retirees
sick and
persons in
need of care
35%
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4. Nationality of recipients
Of the total social benefits, 85 % are currently paid to Germans. About 5 % go to beneficiaries
with West European nationality and about 10 % to people with other nationalities.
This allocation is shown at the next page at the bottom right corner!
Nationalität der Leistungsempfänger
West Europeans
other
5%
10%
85%
German
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Current state
Personal
tax and social insurance contributions
Persönliche Abgabenquote
Total
of redistribution
Gesamtesvolume
Umverteilungsvolumen
30 % for
redistribution
30 % tax
and contributions
30%
30%
GDP
your gross income
Types
of beneficiaries
Art der Leistungsempfänger
West Europeans
working poor
families & children
10%
unemployed
Nationality of recipients
Nationalität der Leistungsempfänger
other
5%
5%
10%
10%
40%
retirees
sick and
persons in
need of care
35%
85%
German
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Now we are getting to the alternatives (red). These describe possible redistribution
systems that might be implemented in the future.
The alternatives differ in comparison to the current state (blue) in several aspects, for
example:
 the personal tax and contribution rises or falls in % of your income, i.e. your
contribution to redistribution changes.
 the total volume of redistribution (share of GDP) increases or decreases
 the allocation across beneficiaries changes
 the allocation across the nationality of recipients changes
You can always evaluate the alternative and check if you personally prefer the current
state (blue) or the alternative (red).
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Please decide for each of the following 8 alternatives, if they are more attractive as
the current state (blue) or if you rather want to stay with the current state.
Important: Please note, that besides the current state (blue) and the respective
alternative (red), there is no alternative option to choose.
Therefore, always ask yourself:
„If there were only these two options, which one would I choose?“
Before starting, we want to show you two examples.
On the next page, you see on the left hand the current state and on the right hand a
possible alternative.
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Example 1
Current state
Personal tax and
social insurance contributions
Alternative
Total amount of redistribution
30 % tax
and contributions
Personal tax and
social insurance contributions
Total amount of redistribution
45 % tax
and contributions
30 % for
redistribution
45 % for
redistribution
30%
30%
45%
your gross income
working poor
10% 5%
unemployed
Type of beneficiaries
Nationality of recipients
Type of beneficiaries
families & children
GDP
West Europeans
5%
10%
West Europeans
5%
other
sick and
persons in
need of care
35%
85%
10%
other
30%
retirees
10%
German
10%
20%
unemployed
retirees
Nationality of recipients
working poor
families & children
10%
40%
45%
GDP
your gross
income
sick and
persons in
need of care
80%
35%
German
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Example 2
Current state
Personal tax and
social insurance contributions
Alternative
Total amount of redistribution
30 % tax
and contributions
30 % for
redistribution
families & children
10% 5%
unemployed
GDP
Type of beneficiaries
West Europeans
5%
10%
5%
other
10%
other
30%
unemployed
35%
West Europeans
5%
20%
retirees
40%
sick and
persons in
need of care
Nationality of recipients
working poor
families & children
10%
retirees
25%
GDP
your gross
income
working poor
25 % for
redistribution
35%
Nationality of recipients
Type of beneficiaries
Total amount of redistribution
35 % tax
and contributions
30%
30%
your gross income
Personal tax and
social insurance contributions
15%
85%
German
30%
sick and
persons in
need of care
85%
German
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Interviewer: Please ask, if the structure is clear.
 if clear: go to „Start of the experiment“
 if not clear, please give the following explanation and show Example 2:
Look at the current state and the alternative. The charts differ,
for example
• your personal tax and contribution ratio diminishes ,
• the amount of redistribution is constant,
• retired persons and working poor get paid more,
• families with children and unemployed get less,
• sick people and care recipients get the same amount as before,
• Germans, West-Europeans and other nationality beneficiaries all get the same
money as before.
 If you think that the alternative is overall better than the current state, then
choose the alternative. If you think, that this is not the case, choose the current
state!
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Interviewer: Please ask, if the respondent is ready to start the experiment.
 if yes, go to „Start of the experiment“
 if no, please give following hint:
The scientific significance of this experiment depends substantially on your
cooperation.
Your answers are also quite valuable for us, even if you may not always be sure of
your decisions. Just concentrate on the points, which are most important to you.
In doubt, just trust your ‚gut feeling‘!
 go to „start of the experiment“
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Start of the experiment
 Now, let us begin with the decision experiment. Please tell me for each of the following
decision situation, if you chose the alternative or the current state.
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