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The Trouble with Take-Up

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  • Doorley Karina

    (8841 Economic and Social Research Institute , Dublin, Ireland)

  • Kakoulidou Theano

    (8841 Economic and Social Research Institute , Dublin, Ireland)

Abstract

Take-up of social welfare is key to its success in alleviating poverty. For a variety of reasons, including stigma, transaction costs and information asymmetry, take-up of welfare benefits is imperfect. This research note discusses the issue of take-up of social welfare and its measurement. We explore the difficulties of estimating welfare take-up, using the example of the Irish Working Family Payment (WFP) and two microsimulation models. We show how estimates of take-up can vary depending on the dataset used for simulation. We then estimate take-up of the WFP, updating the most recent estimate from 2005. Lastly, we discuss policy lessons.

Suggested Citation

  • Doorley Karina & Kakoulidou Theano, 2024. "The Trouble with Take-Up," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(2), pages 673-682, April.
    • Handle: RePEc:bpj:bejeap:v:24:y:2024:i:2:p:673-682:n:8
    DOI: 10.1515/bejeap-2023-0170
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    1. Holly Sutherland & Francesco Figari, 2013. "EUROMOD: the European Union tax-benefit microsimulation model," International Journal of Microsimulation, International Microsimulation Association, vol. 1(6), pages 4-26.
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    6. Doorley, Karina & Kakoulidou, Theano & O'Malley, Seamus & Russell, Helen & Maître, Bertrand, 2022. "Headline Poverty Target Reduction in Ireland and the Role of Work and Social Welfare," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT424.
    7. Wonsik Ko & Robert A. Moffitt, 2022. "Take-up of Social Benefits," NBER Working Papers 30148, National Bureau of Economic Research, Inc.
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    10. Caren Tempelman & Aenneli Houkes-Hommes, 2016. "What Stops Dutch Households from Taking Up Much Needed Benefits?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(4), pages 685-705, December.
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    1. Diego Muñoz-Higueras & Stephan Köppe & Rafael Granell & Amadeo Fuenmayor, 2024. "Non-take-up of in-work benefits: determinants, benefit erosion and indexing," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 58(1), pages 1-19, December.

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