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The effect of benefits level on take-up rates: evidence from a natural experiment

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  • Momi Dahan

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  • Udi Nisan

    ()

Abstract

This paper exploits a quasi-natural experiment to study the effect of social benefits level on take-up rates. We find that households who are eligible for double benefits (twins) have much higher take-up rate - up to double - as compared to a control group of households. Our estimated effect of benefits level is much higher relative to the standard cross section estimates. This finding is less exposed to a selection bias that might plague much of the previous research on the link between benefits level and take-up. It provides strong empirical support for the level of benefits as a key factor in determining take-up rates.
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Suggested Citation

  • Momi Dahan & Udi Nisan, 2010. "The effect of benefits level on take-up rates: evidence from a natural experiment," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 17(2), pages 151-173, April.
  • Handle: RePEc:kap:itaxpf:v:17:y:2010:i:2:p:151-173
    DOI: 10.1007/s10797-009-9109-0
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    File URL: http://hdl.handle.net/10.1007/s10797-009-9109-0
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    Cited by:

    1. repec:bla:revinw:v:62:y:2016:i:4:p:685-705 is not listed on IDEAS
    2. Fuchs, Michael, 2007. "Social assistance - no, thanks? Empirical analysis of non-take-up in Austria 2003," EUROMOD Working Papers EM4/07, EUROMOD at the Institute for Social and Economic Research.
    3. Momi Dahan & Udi Nisan, 2006. "Low Take-up Rates: The Role of Information," CESifo Working Paper Series 1829, CESifo Group Munich.
    4. Julie Janssens & Natascha Van Mechelen, 2017. "Who is to Blame? An Overview of the Factors Contributing to the Non-Take-Up of Social Rights," Working Papers 1708, Herman Deleeck Centre for Social Policy, University of Antwerp.
    5. Zantomio, Francesca, 2008. "The route to take-up: raising incentives or lowering barriers?," ISER Working Paper Series 2008-35, Institute for Social and Economic Research.
    6. Francesca Zantomio & Stephen Pudney & Ruth Hancock, 2010. "Estimating the Impact of a Policy Reform on Benefit Take-up: The 2001 extension to the Minimum Income Guarantee for UK Pensioners," Economica, London School of Economics and Political Science, vol. 77(306), pages 234-254, April.

    More about this item

    Keywords

    Take-up; Social benefits; I38;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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