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Mind vs matter: economic and psychologic determinants of take-up rates of social benefits in the UK

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  • Richiardi, Matteo
  • Vella, Melchior

Abstract

This paper investigates the behavioural dynamics of the take-up of social benefits in the UK. Utilising data from the first nine waves (2010-2019) of the UK Household Longitudinal Study (UKHLS) and eligibility simulations based on the UKMOD tax-benefit calculator (UKHLS-UKMOD), the study finds that there is a significant state dependence effect once initial conditions and unobserved heterogeneity are considered. While economic factors are found to play an important role in explaining the take-up of social benefits, personality traits and cognitive skills do not exhibit a strong and direct influence on the take-up of social benefits. The study concludes by discussing policy implications.

Suggested Citation

  • Richiardi, Matteo & Vella, Melchior, 2024. "Mind vs matter: economic and psychologic determinants of take-up rates of social benefits in the UK," Centre for Microsimulation and Policy Analysis Working Paper Series CEMPA6/24, Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research.
    • Handle: RePEc:ese:cempwp:cempa6-24
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