Low Take-up Rates: The Role of Information


Momi Dahan and Udi Nisan. 2006. “Low Take-up Rates: The Role of Information,” 3, 4, Pp. 1174-1196. Publisher's Version


This paper exploits a quasi-natural experiment to study the role of information in determining take-up patterns of social benefits in a non-stigma environment. We find that take-up rate of households who have the incentive to search for information for a longer period of time is between 8 and 13 percentage points higher as compared to a control group of households. This result is robust to the inclusion of various household characteristics. Our finding provides strong empirical support for information as an important explanation for low take-up rates.
Last updated on 09/28/2021