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Stigma and the take-up of social programs

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Author Info
Ewoudou, Jacques
Tsimpo, Clarence
Wodon, Quentin

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Abstract

Empirical studies send mixed messages as to the magnitude of social stigma associated with the take-up of social transfers and the impact of stigma on take-up. These mixed signals may be related to the fact that stigma and program participation are likely to be jointly determined. If there is a high (low) degree of participation in a program, stigma is likely to be lower (higher) due at least in part to that high (low) degree of participation. This is because the more eligible persons participate, the less one can single out specific individuals for stigma because they use the program. This note suggests this theoretically with a simple model showing that we may have in an idealized setting two equilibria: one with stigma and zero participation in a social program, and one with perfect participation and no stigma.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4962.

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Date of creation: 01 Jun 2009
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Handle: RePEc:wbk:wbrwps:4962

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Keywords: Economic Theory&Research; Access to Finance; Regional Governance; Urban Governance and Management;

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  1. Pudney, Stephen & Monica Hernandez & Ruth Hancock, 2003. "The Welfare Cost of Means-Testing: Pensioner Participation in Income Support," Royal Economic Society Annual Conference 2003 171, Royal Economic Society. [Downloadable!]
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  2. Ruth Hancock & Stephen Pudney & Geraldine Barker & Monica Hernandez & Holly Sutherland, 2004. "The Take-Up of Multiple Means-Tested Benefits by British Pensioners: Evidence from the Family Resources Survey," Fiscal Studies, Institute for Fiscal Studies, vol. 25(3), pages 279-303, September.
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  3. Diamond, Peter A, 1982. "Aggregate Demand Management in Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 881-94, October. [Downloadable!] (restricted)
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  4. Bingley, Paul & Walker, Ian, 2001. "Housing Subsidies and Work Incentives in Great Britain," Economic Journal, Royal Economic Society, vol. 111(471), pages C86-103, May. [Downloadable!] (restricted)
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  5. Monica Hernandez & Stephen Pudney & Ruth Hancock, 2006. "The Welfare Cost of Means Testing: Pensioner Participation in Income," Working Papers 2006004, The University of Sheffield, Department of Economics, revised Apr 2006. [Downloadable!]
  6. Currie, Janet, 2004. "The Take-Up of Social Benefits," IZA Discussion Papers 1103, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Robert Breunig & Indraneel Dasgupta, 2003. "Are People Ashamed of Paying with Food Stamps?," Journal of Agricultural Economics, Blackwell Publishing, vol. 54(2), pages 203-225. [Downloadable!] (restricted)
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  8. 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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