Psychological Frictions and the Incomplete Take-Up of Social Benefits: Evidence from an IRS Field Experiment

• 成果类型: Article
• 署名作者: Bhargava, Saurabh; Manoli, Dayanand
• 署名单位: Carnegie Mellon University; University of Texas System; University of Texas Austin
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20121493
• 发表日期: 2015
• 页码: 3489-3529
• 关键词: income-tax credit; achievement evidence; INFORMATION; PARTICIPATION; EITC; decisions; insurance; KNOWLEDGE; SALIENCE; savings

摘要

We address the role of psychological frictions in the incomplete take-up of EITC benefits with an IRS field experiment. We specifically assess the influence of program confusion, informational complexity, and stigma by evaluating response to experimental mailings distributed to 35,050 tax filers who failed to claim $26 million despite an initial notice. While the mere receipt of the mailing, simplification, and the heightened salience of benefits led to substantial additional claiming, attempts to reduce perceived costs of stigma, application, and audits did not. The study, and accompanying surveys, suggests that low program awareness/understanding and informational complexity contribute to the puzzle of low take-up.