Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/297014 
Year of Publication: 
2023
Series/Report no.: 
Working Paper No. 2023:24
Publisher: 
Institute for Evaluation of Labour Market and Education Policy (IFAU), Uppsala
Abstract: 
Take-up of social benefits is a central issue in poverty alleviation and fiscal evaluations of policy reforms. However, it is difficult t o fi nd exogenous variation in the benefit level, and little is therefore known about takeup responses to basic financial i ncentives. We exploit large and plausibly random variation in levels of "flat rate parental leave benefits", which all Swedish parents are entitled to. There are no financial r easons t o leave money on the table, but take-up is nevertheless imperfect. Higher benefits substantially increase claiming across the income d istribution. We further detect sizeable spill-over effects on subsequent take-up of low-income earners.
Subjects: 
Parental benefits
incomplete take-up
after-tax benefits
JEL: 
H24
J22
Document Type: 
Working Paper

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