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http://ssrn.com/abstract=1137843
 
 

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The Role of Stigma in the Design of Welfare Programs


Tomer Blumkin


Tel Aviv University - Eitan Berglas School of Economics; Ben-Gurion University of the Negev - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Yoram Y. Margalioth


Tel Aviv University - Buchmann Faculty of Law

Efraim Sadka


Tel Aviv University - Eitan Berglas School of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute); Institute for the Study of Labor (IZA)

May 2008

CESifo Working Paper Series No. 2305

Abstract:     
We consider the notion of welfare stigma a la Besley and Coate (1992b). This stigma is attributed to welfare claimants by society when they are perceived as undeserving in the sense that they falsely claim to be eligible for welfare benefits. However, due to imperfect information, this stigma may be extended, with some probability, to all welfare claimants. We examine the implications of this kind of stigma for the design of welfare programs.

Number of Pages in PDF File: 28

Keywords: welfare, take up, targeting, inequality, stigma

JEL Classification: H2, D6

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Date posted: May 27, 2008  

Suggested Citation

Blumkin, Tomer and Margalioth, Yoram Y. and Sadka, Efraim, The Role of Stigma in the Design of Welfare Programs (May 2008). CESifo Working Paper Series No. 2305. Available at SSRN: http://ssrn.com/abstract=1137843

Contact Information

Tomer Blumkin (Contact Author)
Tel Aviv University - Eitan Berglas School of Economics ( email )
P.O. Box 39040
Ramat Aviv, Tel Aviv, 69978
Israel
Ben-Gurion University of the Negev - Department of Economics ( email )
Beer-Sheva 84105
Israel
+972 8 647 2268 (Phone)
+972 8 647 2941 (Fax)
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Yoram Y. Margalioth
Tel Aviv University - Buchmann Faculty of Law ( email )
Ramat Aviv
Tel Aviv 69978, IL
Israel
+972-3-6407014 (Phone)
+972-3-6409576 (Fax)
Efraim Sadka
Tel Aviv University - Eitan Berglas School of Economics ( email )
P.O. Box 39040
Ramat Aviv, Tel Aviv, 69978
Israel
+972 3 640 9712 (Phone)
+972 3 642 8074 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.CESifo.de
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
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