The welfare cost of means-testing: pensioner participation in income support

Publication type

ISER Working Paper Series

Series Number

2006-12

Series

ISER Working Paper Series

Authors

Publication date

April 1, 2006

Abstract:

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%.

Subjects

Notes

working paper

Paper download  

#508336

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