Nudges and Learning: Evidence from Informational Interventions for Low-Income Taxpayers

65 Pages Posted: 1 Dec 2014

See all articles by Day Manoli

Day Manoli

University of Texas at Austin

Nick Turner

Board of Governors of the Federal Reserve System

Date Written: November 2014

Abstract

Can one-time informational interventions cause permanent changes in benefit take-up? In the context the Earned Income Tax Credit, we find evidence that reminding individuals of their eligibility has meaningful effects. Reminder notices have the largest effect among taxpayers without kids, persuading nearly 80 percent of taxpayers in the notice year to claim the credit. The effect of the notice quickly attenuates to roughly 22 percent only one year later. We find that this pattern holds across two experimental settings, one that tests the effect of being sent a notice and one that tests variations in the content of the notices.

Suggested Citation

Manoli, Day and Turner, Nick, Nudges and Learning: Evidence from Informational Interventions for Low-Income Taxpayers (November 2014). NBER Working Paper No. w20718. Available at SSRN: https://ssrn.com/abstract=2532299

Day Manoli (Contact Author)

University of Texas at Austin ( email )

2317 Speedway
Austin, TX 78712
United States

Nick Turner

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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