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  • Policy Paper
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Hidden Poverty

Published
April 15, 2021
Authors

  • Dr. Andrea Paulus

  • Anna Oostendorp
Contact
Judith Straub
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Summary

The non-take-up of basic income support is a major problem: it leads to hidden poverty, social inequality and, indirectly, even to reduced standard rates for everyone. Our researchers Dr Andrea Paulus and Anna Oostendorp have investigated why people forego necessary financial support and how a basic income could help solve the problem. 

All results can be found in our Policy Paper #01: Taking Stock of Basic Security.

The Most Important Findings:

  • According to the current state of research, non-take-up is estimated at between 35% and 48% for ALG II and between 57% and 63% for basic income support in old age.
  • The rate of non-take-up varies depending on the demographic and social characteristics of those eligible for benefits.
  • The reasons cited are a lack of information, a cumbersome application process and the stigma associated with receiving benefits.
  • Evidence for the reasons can be found in general surveys, indirectly in the varying rates of non-take-up and in experiments. 
  • Simplified and digital approval of benefits could partially counteract the reasons for non-take-up. However, an automatically granted basic income would enable full take-up of benefits. In addition, it would plausibly also be effective against the general stigmatisation of benefit receipt.

Team

Dr. Andrea Paulus

Anna Oostendorp

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