Study • Finance · Financial Behaviors
Why are Benefits Left on the Table? Assessing the Role of Information Complexity
Bhargava & Manoli (forthcoming), ‘Why are Benefits Left on the Table? Assessing the Role of Information, Complexity, and Stigma on Take-up with an IRS Field Experiment’, American Economic Review
Summary by Mark Egan
The authors conduct a field experiment with the IRS to examine why people fail to collect benefits they are eligible for. They sent letters to 35,050 California taxpayers who filed their taxes but didn’t claim their 2009 Earned Income Tax Credit (EITC) despite being eligible for it. They varied the text of the mailings to create 3 different conditions The results show that all the mailings substantially increase the likelihood of subsequent year take-up, with the two treatments being more effective than the control. The authors project that applying the tested interventions to all filing non-claimants could reduce incomplete take-up among filers from 10% to 7%.
Tactics used
TACTICS
Education or Information
TACTICS
Increase Salience
TACTICS
Reduce Cognitive Load
Behaviors addressed
Similar studies
Health · Diet & Nutrition
Schwartz et al. (2012). Inviting Consumers to Downsize Fast-Food Portions Significantly Reduces Calorie Consumption.
- Tactics
- Reminders, Cues, & Triggers
- Behaviors
- Diet & Nutrition
Finance · Fine or Debt Collection
Fellner et al. (2011). Testing Enforcement Strategies in the Field -Threat, Moral Appeal and Social Information.
- Tactics
- Social Norms, Reminders, Cues, & Triggers
- Behaviors
- Fine or Debt Collection
Finance · Other, Financial Behaviors
Letzler & Tasoff (2013). Everyone Believes in Redemption
- Tactics
- Reduce Friction or Barriers, Reminders, Cues, & Triggers, Implementation Intentions
- Behaviors
- Other, Financial Behaviors
Finance · Savings
Karlan et al. (2010). Getting to the Top of Mind: How Reminders Increase Saving.
- Tactics
- Reminders, Cues, & Triggers, Micro-Incentives, Goal Setting, Commitment Devices
- Behaviors
- Savings