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No claim, no pain - measuring the non-take-up of social assistance using register data
Date Issued
2009-12
Date Available
2010-12-06T14:31:30Z
Abstract
The main objectives of social assistance beneÂ…fits, including poverty alleviation and labor-market or social reintegration, can be seriously compromised if support is difficult to access.
While recent studies point to high non-take-up rates, existing evidence does not make full use
of the information recorded by benefiÂ…t agencies. Most studies have to rely on interview-based
data, with misreporting and measurement errors affecting the variables needed to establish
both beneÂ…fit receipt and benefiÂ…t entitlement. In this paper, we exploit a unique combination
of Finnish administrative data and eligibility simulations based on the tax-benefiÂ…t calculator
of the Finnish authorities, carefully investigating the measurement issues that remain. We
Â…nd rates of non-take-up that are both substantial and robust: 40% to 50% of those eligible
do not claim. Using repeated cross-section estimations for years 1996-2003, we identify a set
of stable determinants of claiming behavior and suggest that changes in behavior could drive
the observed downward trend in take-up rates during the post-recession period. We discuss
the poverty implications of our results.
Sponsorship
Not applicable
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Series
UCD Centre for Economic Research Working Paper Series
WP 09 31
Classification
D31
H31
H53
I38
Subject – LCSH
Transfer payments
Poverty
Welfare recipients--Statistics
Welfare state
Web versions
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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