Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/233338 
Year of Publication: 
2018
Series/Report no.: 
Discussion paper No. 123
Publisher: 
Aboa Centre for Economics (ACE), Turku
Abstract: 
We analyse to what extent the complexity of benefit rules affects take-up in a setting where the effects of complexity can be separated from other potential causes of non-take-up. The benefit we study is extensively used by individuals from all socioeconomic groups, namely the municipal supplement to the child homecare allowance in Finland. We use individual-level data on mothers of young children together with municipal-level data on the application rules for the benefit. Variation in the supplement rules between municipalities and over time is used to estimate the causal effect of complexity on take-up. We find in a differences-in-differences setting that complexity has a very large effect on take-up. Complex application procedures cause individuals to forego a benefit of approximately 200 \texteuro \ per month, potentially for 2 years.
Subjects: 
benefit take-up
complexity
childcare
JEL: 
I38
H31
H53
Document Type: 
Working Paper

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