Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20964 
Year of Publication: 
2000
Series/Report no.: 
IZA Discussion Papers No. 124
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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

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