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Title: The Welfare Cost of Means-Testing: Pensioner Participation in Income Support
Authors: Pudney, Stephen
Hernandez, Monica
Hancock, Ruth
First Published: Oct-2002
Publisher: Dept. of Economics, University of Leicester
Abstract: We estimate parametric and semi-parametric binary choice models of benefit take-up by British pensioners and develop methods, based on the compensating variation, of inferring the cash-equivalent value of disutility arising from stigma or complexity of the claims process, taking account of the self-selection induced by take-up. We extend this to incorporate the claim costs borne by welfare-recipients into the measurement of pensioner poverty. We find that allowing for implicit claim costs in this way has a non-negligible impact on poverty measurement.
Series/Report no.: Discussion Papers in Economics
Type: Report
Appears in Collections:Reports, Dept. of Economics

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