Rational Poverty or Poor Rationality? The Takeup of Social Assistance Benefits

Riphahn RT (2001)


Publication Language: English

Publication Type: Journal article, Original article

Publication year: 2001

Journal

Publisher: Wiley-Blackwell

Book Volume: 47

Pages Range: 379-398

Journal Issue: 3

Abstract

In several countries social assistance dependence has been increasing since the 1980s. After surveying the theoretical and empirical take-up literature, this study presents estimates of recent rates of non take-up of social assistance benefits. Once methodological shortcomings of prior estimations are corrected, the results show that take-up has fallen recently and thus cannot explain the rising welfare receipt. Following theoretical predictions, the probability that a rational individual takes up social assistance increases with the expected benefit amount and duration, and falls with application cost and stigma. More than half of all households eligible for transfers under the German social assistance program did not claim their benefits.

Authors with CRIS profile

How to cite

APA:

Riphahn, R.T. (2001). Rational Poverty or Poor Rationality? The Takeup of Social Assistance Benefits. Review of Income and Wealth, 47(3), 379-398.

MLA:

Riphahn, Regina Therese. "Rational Poverty or Poor Rationality? The Takeup of Social Assistance Benefits." Review of Income and Wealth 47.3 (2001): 379-398.

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