The Welfare Cost of Means-Testing: Pensioner Participation in Income Support

Stephen Pudney, Monica Hernandez Alava and Ruth Hancock ()

No 03/2, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: We estimate parametric and semi-parametric binary choice models of benefit take-up by British pensioners and develop methods, based on the compensating variation, of inferring the cash-equivalent value of disutility arising from stigma or complexity of the claims process, taking account of the self-selection induced by take-up. We extend this to incorporate the claim costs borne by welfare-recipients into the measurement of pensioner poverty. We find that allowing for implicit claim costs in this way has a non-negligible impact on poverty measurement.

Keywords: benefit take-up; program participation; pensions; welfare; poverty (search for similar items in EconPapers)
JEL-codes: C25 D63 H55 I32 I38 (search for similar items in EconPapers)
Date: 2002-10
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (13)

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Related works:
Journal Article: The welfare cost of means-testing: pensioner participation in income support (2007)
Working Paper: The welfare cost of means-testing: pensioner participation in income support (2006)
Working Paper: The Welfare Cost of Means-Testing: Pensioner Participation in Income Support (2003)
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