Model of endogenous welfare stigma: Statistical discrimination view

Kenichi Kurita (), Nobuaki Hori and Yuya Katafuchi

MPRA Paper from University Library of Munich, Germany

Abstract: This paper tries to challenge two puzzles in the welfare benefit program. The first puzzle is non-take-up welfare which means poor people do not take-up welfare even though they are approved to take-up. Second, empirical evidence suggests that there may exist the inverse U-shaped relationship between benefit level and beneficiary ratio. We present a model of welfare stigma as a hypothesis to explain the above puzzles. Specifically, we investigate the statistical discrimination view model. Results are summarized as the relationship between two types of elasticity.

Keywords: Stigma; Take-up; Minimum income guarantee; OECD panel data; Poverty (search for similar items in EconPapers)
JEL-codes: H31 H53 I38 (search for similar items in EconPapers)
Date: 2019-02-01
New Economics Papers: this item is included in nep-pbe
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Working Paper: Model of endogenous welfare stigma: Statistical discrimination view (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:96836

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