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Estimating and Testing a Model of Welfare Participation: The Case of Supplementary Benefits in Britain

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  • Duclos, Jean-Yves

Abstract

Evidence of incomplete participation in welfare programs is often displayed. This paper analyzes how such apparent failures to participate can be explained by the presence of random errors in assessing benefit eligibility, by income underreporting, by benefit misreporting, and by participation costs. The author applies the model to the receipts of supplementary benefits in Britain. A bivariate extension of the use of generalized residuals in testing the robustness of limited-dependent-variable models is provided and fails to reject a number of the author's stochastic assumptions. Copyright 1997 by The London School of Economics and Political Science

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  • Duclos, Jean-Yves, 1997. "Estimating and Testing a Model of Welfare Participation: The Case of Supplementary Benefits in Britain," Economica, London School of Economics and Political Science, vol. 64(253), pages 81-100, February.
  • Handle: RePEc:bla:econom:v:64:y:1997:i:253:p:81-100
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    Cited by:

    1. 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.
    2. Franziska Gassmann, 2013. "Kyrgyz Republic : Minimum Living Standards and Alternative Targeting Methods for Social Transfers," World Bank Other Operational Studies 16087, The World Bank.
    3. Guyonne R. Kalb, 2000. "Labour Supply and Welfare Participation in Australian Two-Adult Households: Accounting for Involuntary Unemployment and the 'Cost' of Part-time Work," Centre of Policy Studies/IMPACT Centre Working Papers bp-35, Victoria University, Centre of Policy Studies/IMPACT Centre.
    4. Sylvain Chareyron, 2015. "Take-up of social assistance benefits: The case of homeless Take-up of Social Assistance Benefits: The Case of Homeless," Working Papers hal-01292107, HAL.
    5. Figari, Francesco & Paulus, Alari & Sutherland, Holly, 2014. "Microsimulation and policy analysis," ISER Working Paper Series 2014-23, Institute for Social and Economic Research.
    6. Terracol, Antoine, 2009. "Guaranteed minimum income and unemployment duration in France," Labour Economics, Elsevier, vol. 16(2), pages 171-182, April.
    7. François Bourguignon & Amadéo Spadaro, 2005. "Microsimulation as a tool for evaluating redistribution policies," Working Papers halshs-00590863, HAL.
    8. Winter-Ebmer, Rudolf, 2003. "Benefit duration and unemployment entry: A quasi-experiment in Austria," European Economic Review, Elsevier, vol. 47(2), pages 259-273, April.

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