Mind vs matter: economic and psychologic determinants of take-up rates of social benefits in the UK

Matteo Richiardi, Justin van de Ven and Melchior Vella

No CEMPA6/24, Centre for Microsimulation and Policy Analysis Working Paper Series from Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research

Abstract: This paper investigates the dynamics of take-up of social benefits in the UK, finding significant state dependence even after accounting for initial conditions and unobserved heterogeneity. Personality traits and cognitive skills do not exhibit a strong and direct effect. The paper also offers a quantification of the cost of claiming, providing new evidence that these have significantly increased in the 2010s, possibly in association with the introduction of Universal Credit – an overarching benefit with strong conditionality requirements. The findings offer important policy insights into the onset and persistence of benefit claims and potential avenues for intervention.

Date: 2024-09-05
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