Identifying Inattention and Active Choice in Incomplete Social Assistance Takeup: The Case of WIC

Lei Bill Wang and Sooa Ahn

Papers from arXiv.org

Abstract: Existing literature on incomplete social assistance takeup points to two distinct behavioral mechanisms: inattention and active choice. We develop an econometric framework that semiparametrically identifies these mechanisms by exploiting institutional features common to public programs. Applying the framework to WIC, we compare two interventions: choice-nudging messages (CNM) and attention-boosting messages (ABM). While CNM increases takeup more because of its dynamic attention channel, ABM generates higher marginal value of public funds because its marginal participants are positively selected on willingness to pay. These results demonstrate that distinguishing inattention from active choice is crucial for both decomposing policy effects and evaluating welfare.

Date: 2025-06, Revised 2026-08
New Economics Papers: this item is included in nep-dcm and nep-upt
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