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The Role of Stigma in the Design of Welfare ProgramsTomer BlumkinTel Aviv University - Eitan Berglas School of Economics; Ben-Gurion University of the Negev - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Yoram Y. MargaliothTel Aviv University - Buchmann Faculty of Law Efraim SadkaTel Aviv University - Eitan Berglas School of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); 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 working papers seriesDate posted: May 27, 2008Suggested CitationContact Information
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