Mind vs matter: economic and psychologic determinants of take-up rates of social benefits in the UK

Authors

Publication Date

Sep 2024

Abstract

This paper investigates the behavioural dynamics of the take-up of social benefits in the UK. Utilising data from the first nine waves (2010-2019) of the UK Household Longitudinal Study (UKHLS) and eligibility simulations based on the UKMOD tax-benefit calculator (UKHLS-UKMOD), the study finds that there is a significant state dependence effect once initial conditions and unobserved heterogeneity are considered. While economic factors are found to play an important role in explaining the take-up of social benefits, personality traits and cognitive skills do not exhibit a strong and direct influence on the take-up of social benefits. The study concludes by discussing policy implications.

Publication type

CeMPA Working Paper Series

Series Number

CEMPA6/24

Research area

Tax and benefit systems

Links

https://www.iser.essex.ac.uk/research/publications/working-papers/cempa/cempa6-24

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Cid:578342

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