Participation in Multiple Welfare Programmes: discrete choice with heterogeneous awareness

Abstract

We estimate a discrete choice model of welfare participation by British pensioners who may have entitlements under multiple welfare programmes (Income Support, Housing Benefit and Council Tax Benefit). The model allows for imperfect information and subjective claim costs and is estimated using data from five years of the Family Resources Survey. We use the model to estimate the distribution of claim costs using the compensating variation principle and assess the impact of claim costs and information search costs on poverty measurement.