The Trouble with Take-Up

Author:

Doorley Karina123,Kakoulidou Theano13

Affiliation:

1. 8841 Economic and Social Research Institute , Dublin , Ireland

2. Institute of Labor Economics , Bonn , Germany

3. Trinity College Dublin , Dublin , Ireland

Abstract

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.

Publisher

Walter de Gruyter GmbH

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