Stigma in Welfare Programs

Pablo Celhay, Bruce Meyer and Nikolas Mittag

No 30307, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Stigma of welfare participation is important for policy and survey design, because it deters program take-up and increases misreporting. Stigma is also relevant to the literature on social image concerns, yet empirical evidence is scant because stigma is difficult to empirically identify. We use a novel approach to studying stigma by examining the relationship between program participation in a recipient’s local network and underreporting program participation in surveys. We find a robust negative relationship and rule out explanations other than stigma. Stigma decreases when more peers engage in the stigmatized behavior and when such actions are less observable.

JEL-codes: D91 H53 I38 (search for similar items in EconPapers)
Date: 2022-07
Note: CH LS PE
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Citations: View citations in EconPapers (2)

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Working Paper: Stigma in Welfare Programs (2022)
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