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Increasing the take-up of the housing allowance among Swedish pensioners: a field experiment

Author

Listed:
  • Per Engström

    (Uppsala University)

  • Eskil Forsell

    (Stockholm School of Economics)

  • Johannes Hagen

    (Jönköping University
    Uppsala University)

  • Arnaldur Stefánsson

    (Uppsala University)

Abstract

Using a randomized field experiment in the Swedish pension system, we investigate whether receiving an information letter affects the take-up rate of the housing allowance for pensioners. We also investigate whether the framing of the information letter affects take-up. The results show that simple information letters had a significant effect on the application rate and subsequent take-up rate: The baseline application rate in the targeted control population was only 1.4%, while the corresponding rates in the different treatment groups were between 9.9 and 12.1%. However, while the applications in the control group were accepted in almost 3 out of 4 cases, up to 50% of the applications in the treatment group were declined. The lower conditional acceptance rate in the treatment group seems to be largely driven by wealth, which the Pensions Agency cannot observe prior to submission. Information campaigns aimed at increasing benefit take-up therefore need careful design in situations with imperfect targeting.

Suggested Citation

  • Per Engström & Eskil Forsell & Johannes Hagen & Arnaldur Stefánsson, 2019. "Increasing the take-up of the housing allowance among Swedish pensioners: a field experiment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(6), pages 1353-1382, December.
    • Handle: RePEc:kap:itaxpf:v:26:y:2019:i:6:d:10.1007_s10797-019-09538-9
    DOI: 10.1007/s10797-019-09538-9
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    References listed on IDEAS

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    Cited by:

    1. Johannes Hagen & Daniel Hallberg & Gabriella Sjögren, 2022. "A Nudge to Quit? The Effect of a Change in Pension Information on Annuitisation, Labour Supply and Retirement Choices Among Older Workers," The Economic Journal, Royal Economic Society, vol. 132(643), pages 1060-1094.
    2. Rosenqvist, Olof & Selin, Håkan, 2023. "Explaining benefit take-up behavior – the role of incentives and habits," Working Paper Series 2023:24, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Hagen, Johannes & Malisa, Amedeus, 2022. "Financial fraud and individual investment behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 593-626.

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    More about this item

    Keywords

    Benefit take-up; RCT; Nudge;
    All these keywords.

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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