Poor Choices? : On Social Context and the Claiming of Means-tested Benefits

Sammanfattning: In this dissertation, comprising one theoretical chapter and three self-contained empirical studies, I study how the choice to claim means-tested benefits is affected by the social context. In Chapter 1, Considering Choices, I discuss how sociological research can benefit from taking choices into account, and I review the literature on rational choice theory to assess its relevance as a tool for considering choices in sociology.In Chapter 2, Social Influence Effects on Social Assistance Recipiency, I use aggregated register data on individuals 20–25 years old in Stockholm County during the 1990’s, to study whether Social Assistance (SA) recipiency of others of the same age in the parish of residence is related to one’s own propensity to apply for such benefits: the results show that it has substantial effects on inflow to SA but only weak effects on outflow from SA.In Chapter 3, Endogenous Neighbourhood Effects on Welfare Use, I use micro-level register data to study these processes among couples in Stockholm. The results corroborate the finding that SA recipiency among people in the neighbourhood substantially affects the probability of inflow to SA recipiency at a given income standard, suggesting self-reinforcing effects of changes in the level of SA. The estimated effects on outflow are negligible.Chapter 4, Take-up Down Under: The Under-use of Means-tested Benefits in Australia, studies the choices to claim means-tested benefits in Australia. In contrast to Sweden, virtually all benefits in Australia are means-tested. I use survey panel data to estimate the general level of non-take-up of means-tested benefits among the poor, and to study the extent and causes of take-up of Parenting Payment. The results suggest that take-up of means-tested benefits is relatively high in Australia, but that groups likely to experience higher stigma, higher transaction costs, and to have less access to information have lower take-up than others.