Concept and models
Moffitt (1981; 1983) modelled take-up as a trade-off between monetary benefits and the psychological cost of stigma. This connects to labeling theory, which examines negative labels attached to groups.
Causes
Besley and Coate (1992) traced stigma to taxpayer resentment and statistical discrimination presuming recipients are lazy. Public judgements of welfare deservingness shape its intensity. Stuber and Kronebusch (2004) distinguished personal, social and institutional stigma.
Effects and remedies
Currie (2004) identified stigma, with complex procedures, as a key cause of non-take-up. Baumberg (2016) found widespread shame about claiming in Britain, and Friedrichsen and colleagues (2018) showed experimentally that visibility reduces take-up. Universal benefits, automatic payment and reducing administrative burden are proposed remedies.
FAQ
- What is welfare stigma in simple terms?
- Feeling ashamed of receiving benefits, or being looked down on for it.
- How can stigma be reduced?
- Research points to universal benefits, automatic payment and keeping claims confidential.
Sources reviewed: 2026-10-26
References
- Moffitt, R. (1983). An economic model of welfare stigma. The American Economic Review, 73(5), 1023–1035. The classic economic model of welfare stigma.
- Moffitt, R. (1981). Participation in the AFDC program and the stigma of welfare receipt: Estimation of a choice-theoretic model. Southern Economic Journal, 47(3), 753–762. Early estimate of stigma's effect on take-up.
- Besley, T., & Coate, S. (1992). Understanding welfare stigma: Taxpayer resentment and statistical discrimination. Journal of Public Economics, 48(2), 165–183. Two sources: taxpayer resentment and statistical discrimination.
- Stuber, J., & Kronebusch, K. (2004). Stigma and other determinants of participation in TANF and Medicaid. Journal of Policy Analysis and Management, 23(3), 509–530. Types of stigma and programme participation.
- Currie, J. (2004). The take up of social benefits (NBER Working Paper No. 10488). National Bureau of Economic Research. Reviews causes of benefit non-take-up.
- Baumberg, B. (2016). The stigma of claiming benefits: A quantitative study. Journal of Social Policy, 45(2), 181–199. Quantifies benefit stigma in Britain.
- Friedrichsen, J., König, T., & Schmacker, R. (2018). Social image concerns and welfare take-up. Journal of Public Economics, 168, 174–192. Experimental evidence on social image and take-up.