The Effect of Benefits Level on Take-Up Rates: Evidence from a Natural Experiment
Hebrew University of Jerusalem - School of Public Policy; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Harvard University - Kennedy School of Government
CESifo Working Paper Series No. 1885
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.
Number of Pages in PDF File: 41
Keywords: take-up, social benefits
JEL Classification: I38working papers series
Date posted: January 29, 2007
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