The route to take-up: raising incentives or lowering barriers?ISER Internal Seminars

This paper investigates which measures are effective in promoting the
take-up of welfare support by needy individuals, considering both financial
incentives and policies intended to lower claiming costs. The analysis uses
an exogenous policy change, the introduction of the Pension Credit in the
United Kingdom in 2003, that reformed the income support scheme available to
pensioners. While increasing the entitlement amount for a subgroup of
pensioners, the Pension Credit introduction was accompanied by other
measures, including an advertisement campaign, reformed `light touch’
administration and a more claimant-friendly application procedure. The
behavioural response to
such exogenous changes is identified using parametric and non parametric
analysis of
repeated cross sections of Family Resources Survey data. Results
consistently show the efficacy of increased financial incentives as take-up
triggers, while no effect is found for the `lowering barriers’ policies when
unaccompanied by concurrent raised monetary rewards.

Presented by:

Francesca Zantomio (ISER)

Date & time:

October 22, 2008 12:00 pm - October 21, 2008 11:00 pm

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