This paper is a summary of the major findings of a large research project on the distributional impacts of government policies in Switzerland. First, the budget incidence of the entire public sector, including the social security system, is presented. The results indicate a substantial redistribution from upper-income to lower-income classes. The effect is largely due to public spending rather than to taxation. Second, the distributional impacts of public policy in selected policy areas—transportation, social security, agriculture, and health—are investigated. Redistribution is pro the poor for transportation and health, and pro the rich for agriculture. A mixed picture is found for social security. Within groups of the same marital status or sex, redistribution is pro the poor. Between these groups, it is pro the rich. Third, the distributional impacts of changes in selected macroeconomic variables are analyzed. The major conclusion is that macroeconomic growth policies, if successful, lead to a reduced equality of income distribution.
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