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Estimating and Testing a Model of Welfare Participation: the Case of Supplementary Benefits in Britain

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  • Jean‐Yves Duclos

Abstract

Evidence of incomplete participation in welfare programmes is often displayed. This paper analyses how such apparent failures to participate can be explained by the presence of random errors in assessing benefit eligibility, by income underreporting, by benefit misreporting, and by participation costs. We apply the model to the receipts of supplementary benefits in Britain. A bivariate extension of the use of generalized residuals in testing the robustness of limited‐dependent‐variable models is provided and fails to reject a number of our stochastic assumptions.

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  • Jean‐Yves Duclos, 1997. "Estimating and Testing a Model of Welfare Participation: the Case of Supplementary Benefits in Britain," Economica, London School of Economics and Political Science, vol. 64(253), pages 81-100, February.
    • Handle: RePEc:bla:econom:v:64:y:1997:i:253:p:81-100
    DOI: 10.1111/1468-0335.00065
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    Cited by:

    1. François Bourguignon & Amedeo Spadaro, 2006. "Microsimulation as a tool for evaluating redistribution policies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 4(1), pages 77-106, April.
    2. Sylvain Chareyron, 2016. "Le non-recours aux aides sociales sous conditions de ressources," Erudite Ph.D Dissertations, Erudite, number ph16-01 edited by Yannick L'Horty & François Legendre, September.
    3. Terracol, Antoine, 2009. "Guaranteed minimum income and unemployment duration in France," Labour Economics, Elsevier, vol. 16(2), pages 171-182, April.
    4. Hernandez, Monica & Pudney, Stephen, 2007. "Measurement error in models of welfare participation," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 327-341, February.
    5. Figari, Francesco & Paulus, Alari & Sutherland, Holly, 2014. "Microsimulation and policy analysis," ISER Working Paper Series 2014-23, Institute for Social and Economic Research.
    6. Winter-Ebmer, Rudolf, 2003. "Benefit duration and unemployment entry: A quasi-experiment in Austria," European Economic Review, Elsevier, vol. 47(2), pages 259-273, April.
    7. Franziska Gassmann, 2013. "Kyrgyz Republic : Minimum Living Standards and Alternative Targeting Methods for Social Transfers," World Bank Publications - Reports 16087, The World Bank Group.
    8. Bruckmeier, Kerstin & Riphahn, Regina T. & Wiemers, Jürgen, 2019. "Benefit underreporting in survey data and its consequences for measuring non-take-up: new evidence from linked administrative and survey data," IAB-Discussion Paper 201906, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Guyonne R. Kalb, 2000. "Labour Supply and Welfare Participation in Australian Two-Adult Households: Accounting for Involuntary Unemployment and the 'Cost' of Part-time Work," Centre of Policy Studies/IMPACT Centre Working Papers bp-35, Victoria University, Centre of Policy Studies/IMPACT Centre.
    10. Sylvain Chareyron, 2015. "Take-up of social assistance benefits: The case of homeless Take-up of Social Assistance Benefits: The Case of Homeless," Working Papers hal-01292107, HAL.

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