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Model of endogenous welfare stigma: Statistical discrimination view

Author

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  • Kurita, Kenichi
  • Hori, Nobuaki
  • Katafuchi, Yuya

Abstract

This paper tries to challenge two puzzles in the welfare benefit program. The first puzzle is non-take-up welfare which means poor people do not take-up welfare even though they are approved to take-up. Second, empirical evidence suggests that there may exist the inverse U-shaped relationship between benefit level and beneficiary ratio. We present a model of welfare stigma as a hypothesis to explain the above puzzles. Specifically, we investigate the statistical discrimination view model. Results are summarized as the relationship between two types of elasticity.

Suggested Citation

  • Kurita, Kenichi & Hori, Nobuaki & Katafuchi, Yuya, 2019. "Model of endogenous welfare stigma: Statistical discrimination view," MPRA Paper 96836, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:96836
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    References listed on IDEAS

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    1. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
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    More about this item

    Keywords

    Stigma; Take-up; Minimum income guarantee; OECD panel data; Poverty;
    All these keywords.

    JEL classification:

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

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