Working Paper: NBER ID: w30307
Authors: Pablo A. Celhay; Bruce D. Meyer; Nikolas Mittag
Abstract: Stigma of welfare participation is important for policy and survey design, because it deters program take-up and increases misreporting. Stigma is also relevant to the literature on social image concerns, yet empirical evidence is scant because stigma is difficult to empirically identify. We use a novel approach to studying stigma by examining the relationship between program participation in a recipient’s local network and underreporting program participation in surveys. We find a robust negative relationship and rule out explanations other than stigma. Stigma decreases when more peers engage in the stigmatized behavior and when such actions are less observable.
Keywords: welfare stigma; program participation; underreporting; social image concerns
JEL Codes: D91; H53; I38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| stigma (J70) | underreporting of program receipt (H53) |
| local program participation (H79) | underreporting of program receipt (H53) |
| local program participation (H79) | stigma (J70) |
| stigma (J70) | local program participation (H79) |
| visibility of participation (C90) | strength of stigma (Z13) |