Based on the comparison of detailed micro-data (EU-SILC), official figures on recipients and expenditure as well as potential entitlements simulated with the tax/benefit microsimulation model EUROMOD, the paper estimates the size of non-take-up of monetary social assistance benefits in Austria in 2003. To account for likely measurement errors both in the reported income data as well as in the simulation of household needs, participation rates are calculated for various scenarios of the underlying parameters. I find that more than half of all households potentially entitled to the benefit do not claim. The determinants of non-take-up analysed in different regression models con-trolling for possible endogeneity of independent variables ñ significant higher participation rates inter alia in case of higher amounts entitled to, a non-employed head, living in Vienna ñ confirm hypotheses derived from theoretical models of take-up related to pecuniary determinants, information and administration costs as well as psychological costs.
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Paper provided by EUROMOD at the Institute for Social and Economic Research in its series EUROMOD Working Papers with number
EM4/07.
Length: Date of creation: 01 Oct 2007 Date of revision: Handle: RePEc:ese:emodwp:em4/07
Note: microsimulation, Austria, take-up, social assistance Contact details of provider: Postal: RAB Butler Building, University of Essex, Wivenhoe Park, Colchester, ESSEX C04 3SQ Phone: +44 (0)1206 872957 Fax: +44 (0)1206 873151 Email: Web page: http://www.iser.essex.ac.uk/research/euromod/ More information through EDIRC
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Find related papers by JEL classification: D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
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