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Title:The effect of benefits level on take-up rates: evidence from a natural experiment PDF Logo
Authors:Dahan, Momi
Nisan, Udi
Issue Date:2007
Series/Report no.:CESifo working paper 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.
JEL:I38
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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