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Child Benefit Support and Method of Payment: Evidence from a Randomized Experiment in Belgium

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  • Marieke Huysentruyt
  • Eva Lefevere

Abstract

We examine the effects of information and information presentation format on individuals' choice of payment method in a large randomized experiment carried out with the Belgian National Office for Family Benefits. We find that a one-time mailing providing information about method of payment for child benefit support caused a fourfold increase in parents' decision to switch from payment by check to electronic payment. Simple, low-cost supplements significantly raised people's responsiveness to the mailing. Our results suggest that complexity and information (processing) costs pose significant barriers to transitioning to electronic payment methods, and that deliberate efforts to lower these costs can contribute to large behavioral changes. (JEL D83, J13)

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  • Marieke Huysentruyt & Eva Lefevere, 2010. "Child Benefit Support and Method of Payment: Evidence from a Randomized Experiment in Belgium," American Economic Journal: Economic Policy, American Economic Association, vol. 2(2), pages 163-184, May.
    • Handle: RePEc:aea:aejpol:v:2:y:2010:i:2:p:163-84
    Note: DOI: 10.1257/pol.2.2.163
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    References listed on IDEAS

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    Cited by:

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    2. Homrighausen, Pia & Lang, Julia, 2019. "Do informational nudges alter firms’ hiring behavior of older workers?," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203481, Verein für Socialpolitik / German Economic Association.
    3. Wahid Abdallah, 2017. "Electronic filing System, Bureaucratic Efficiency and Public Service Delivery: Evidence from Bangladesh," Working Papers id:12223, eSocialSciences.
    4. Homrighausen, Pia & Lang, Julia, 2019. "Do informational nudges alter firms' hiring behavior of older workers?," IAB-Discussion Paper 201923, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Stephan, Gesine & van den Berg, Gerard & Homrighausen, Pia, 2016. "Randomizing information on a targeted wage support program for older workers: A field experiment," VfS Annual Conference 2016 (Augsburg): Demographic Change 145487, Verein für Socialpolitik / German Economic Association.
    6. Olivier Body, 2014. "When Is Speech Silver and Silence Golden ?A Field Experiment on an Information Campaign," Working Papers ECARES ECARES 2014-32, ULB -- Universite Libre de Bruxelles.

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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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    1. Child Benefit Support and Method of Payment: Evidence from a Randomized Experiment in Belgium (American Economic Journal: Economic Policy 2010) in ReplicationWiki

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