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Title:Rational Poverty or Poor Rationality? The Take-up of Social Assistance Benefits PDF Logo
Authors:Riphahn, Regina T.
Issue Date:2000
Series/Report no.:IZA Discussion paper series 124
Abstract:In several countries social assistance dependence has been increasing since the 1980s. After surveying the theoretical and empirical take-up literature, this study presents estimates of recent rates of non take-up of social assistance benefits. Once methodological shortcomings of prior estimations are corrected, the results show that take-up has fallen recently and thus cannot explain the rising welfare receipt. Following theoretical predictions, the probability that a rational individual takes up social assistance increases with the expected benefit amount and duration, and falls with application cost and stigma. More than half of all households eligible for transfers under the German social assistance program did not claim their benefits.
Subjects:Take-up
transfer program
social assistance
welfare
JEL:I38
D31
I32
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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