Abstract
Stigma of welfare participation is important for policy and survey design, because it reduces 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 provide evidence against explanations other than stigma. Stigma decreases when more peers engage in the stigmatized behavior and when such actions are less observable.
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© 2025 by The President and Fellows of Harvard College and the Massachusetts Institute of Technology. Published under a Creative Commons Attribution 4.0 International (CC BY 4.0) license.
2025
President and Fellows of Harvard College and the Massachusetts Institute of Technology
This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. For a full description of the license, please visit https://creativecommons.org/licenses/by/4.0/legalcode
