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Information and participation in a social program

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Author Info
David Coady () (International Monetary Fund (IMF))
Cesar Martinelli () (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))
Susan Parker () (Centro de Docencia e Investigación Económica)

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Abstract

Participation in a social program, like that in clubs and other social organizations, is the result of a process in which an agent first learns about the requirements, benefits, and the likelihood of acceptance, applies for membership, and finally is accepted or rejected. At each stage of the process, decisions made by the agent are responsive to expectations about the decisions and outcomes at the following stages. We propose a model of the participation process and estimate it using data from a social program in Mexico. We are able to distinguish empirically between information costs and other application costs, and show that self-selection due to information costs in fact contributes to targeting the program to the poorest families.

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Publisher Info
Paper provided by Centro de Investigacion Economica, ITAM in its series Working Papers with number 0806.

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Length: 26 pages
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:cie:wpaper:0806

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Web page: http://cie.itam.mx/
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Related research
Keywords: Program participation; take up; information aquisition; targeting; undercoverage; leakage;

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  1. Anna Aizer, 2006. "Public Health Insurance, Program Take-Up, and Child Health," NBER Working Papers 12105, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Ravallion, Martin, 1996. "Issues in Measuring and Modelling Poverty," Economic Journal, Royal Economic Society, vol. 106(438), pages 1328-43, September. [Downloadable!] (restricted)
    Other versions:
  3. Anna Aizer, 2003. "Low Take-Up in Medicaid: Does Outreach Matter and for Whom?," American Economic Review, American Economic Association, vol. 93(2), pages 238-241, May. [Downloadable!]
  4. Duclos, Jean-Yves, 1995. "Modelling the take-up of state support," Journal of Public Economics, Elsevier, vol. 58(3), pages 391-415, November. [Downloadable!] (restricted)
  5. James J. Heckman & Jeffrey A. Smith, 2004. "The Determinants of Participation in a Social Program: Evidence from a Prototypical Job Training Program," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 243-298, April. [Downloadable!]
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  6. Hernandez, Monica & Pudney, Stephen, 2007. "Measurement error in models of welfare participation," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 327-341, February. [Downloadable!] (restricted)
  7. Stephen Pudney & Monica Hernandez & Ruth Hancock, 2007. "The welfare cost of means-testing: pensioner participation in income support," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(3), pages 581-598. [Downloadable!]
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  8. César Martinelli & Susan W. Parker, 2006. "Deception and Misreporting in a Social Program," Levine's Bibliography 321307000000000120, UCLA Department of Economics. [Downloadable!]
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  9. Micklewright, John & Coudouel, Aline & Marnie, Sheila, 2004. "Targeting and Self-Targeting in a New Social Assistance Scheme," IZA Discussion Papers 1112, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December. [Downloadable!] (restricted)
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