Low Take-up Rates: The Role of Information

Momi Dahan () and Udi Nisan ()

No CESifo Working Paper No. 1829, CESifo Working Paper Series from CESifo Group Munich

Abstract: This paper exploits a quasi-natural experiment to study the role of information in determining take-up patterns of social benefits in a non-stigma environment. We find that take-up rate of households who have the incentive to search for information for a longer period of time is between 8 and 13 percentage points higher as compared to a control group of households. This result is robust to the inclusion of various household characteristics. Our finding provides strong empirical support for information as an important explanation for low take-up rates.

Keywords: take-up; social benefits; information cost (search for similar items in EconPapers)
JEL-codes: I38 (search for similar items in EconPapers)
Date: 2006
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