The welfare cost of means-testing: pensioner participation in income support
We estimate parametric and semi-parametric binary choice models of benefit take-up by British pensioners and use a revealed preference argument to infer the cash-equivalent value of disutility arising from stigma or complexity of the claims process. These implicit costs turn out to be relatively small, averaging about £ 3-4 per week across Income Support recipients. Using the Foster-Greer-Thorbecke measure of poverty among pensioners, we find that allowing for implicit claim costs incurred by benefit recipients raises the measured degree of poverty by not more than 13%.
Year of publication: |
2006-04-01
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Authors: | Hernandez, Monica ; Pudney, Stephen ; Hancock, Ruth |
Institutions: | ESRC Research Centre on Micro-Social Change, Institute for Social and Economic Research (ISER) |
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freely available
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