Publication type
CeMPA Working Paper Series
Series Number
CEMPA6/24
Series
CeMPA Working Paper Series
Authors
Publication date
September 5, 2024
Abstract:
This paper investigates the behavioural dynamics of the take-up of social benefits in the UK. Utilising data from the first nine waves (2010-2019) of the UK Household Longitudinal Study (UKHLS) and eligibility simulations based on the UKMOD tax-benefit calculator (UKHLS-UKMOD), the study finds that there is a significant state dependence effect once initial conditions and unobserved heterogeneity are considered. While economic factors are found to play an important role in explaining the take-up of social benefits, personality traits and cognitive skills do not exhibit a strong and direct influence on the take-up of social benefits. The study concludes by discussing policy implications.
Subjects
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