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

Authors

Melchior Vella, Matteo Richiardi, Justin van de Ven

Publication Date

Sep 2024

Abstract

This paper investigates the dynamics of take-up of social benefits in the UK, finding significant state dependence even after accounting for initial conditions and unobserved heterogeneity. Personality traits and cognitive skills do not exhibit a strong and direct effect. The paper also offers a quantification of the cost of claiming, providing new evidence that these have significantly increased in the 2010s, possibly in association with the introduction of Universal Credit – an overarching benefit with strong conditionality requirements. The findings offer important policy insights into the onset and persistence of benefit claims and potential avenues for intervention.

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