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The Effect of Benefits Level on Take-Up Rates: Evidence from a Natural Experiment


Momi Dahan


Hebrew University of Jerusalem - School of Public Policy; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Udi Nisan


Harvard University - Kennedy School of Government

January 2007

CESifo Working Paper Series No. 1885

Abstract:     
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: I38

working papers series


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Date posted: January 29, 2007  

Suggested Citation

Dahan, Momi and Nisan, Udi, The Effect of Benefits Level on Take-Up Rates: Evidence from a Natural Experiment (January 2007). CESifo Working Paper Series No. 1885. Available at SSRN: http://ssrn.com/abstract=959992

Contact Information

Momi Dahan (Contact Author)
Hebrew University of Jerusalem - School of Public Policy ( email )
Mount Scopus
Jerusalem 91905
Israel
972-2-5883709 (Phone)
972-2-5880047 (Fax)
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, DE-81679
Germany
Udi Nisan
Harvard University - Kennedy School of Government ( email )
Israel
Feedback to SSRN (Beta)


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