The Effect of Benefits Level on Take-up Rates: Evidence from a Natural Experiment

Momi Dahan () and Udi Nisan ()

No CESifo Working Paper No. 1885, CESifo Working Paper Series from CESifo Group Munich

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.

Keywords: take-up; social benefits (search for similar items in EconPapers)
JEL-codes: I38 (search for similar items in EconPapers)
Date: 2007
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