Title
Child benefit support and method of payment: evidence from a randomized experiment in Belgium Child benefit support and method of payment: evidence from a randomized experiment in Belgium
Author
Faculty/Department
Faculty of Social Sciences. Sociology
Publication type
report
Publication
Antwerp :University of Antwerp, [*]
Subject
Sociology
Source (series)
Working paper / University of Antwerp, Herman Deleeck Centre for Social Policy ; 08/02
Volume/pages
30 p.,
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
We present evidence from a randomized …eld experiment explictly designed to shed light on the role of standard information, goal framed information, and decision task complexity in individuals’choice of payment method. The experiment encouraged 19,707 Clients of the Belgian National O¢ ce for Family Bene…ts to change from bene…t payment by check to payment via direct transfer via a one-time mailing. The direct mailings multiplied the switching rate of these treated individuals (relative to the controls) by more than four times, showing that simply providing information can result in a very large behavioural change. Interestingly, foreigners were much more reponsive to the direct mailings than Belgians. Furthermore, simple, low- cost supplements to the standard information can amplify the magnitude of the behavioural responses. Adding both a ‡yer and a speci…c plan supplement to the standard letter not only yielded the largest e¤ects on individuals’ method of payment choice, but also appeared to speed up the decision to switch. We provide a simple, behavioural economics’interpretation to account for our results. Keywords: Social se
Full text (open access)
https://repository.uantwerpen.be/docman/irua/0817e7/09a6bbf9.pdf
Handle