Do complexity and ambiguity affect people's intent to apply for public assistance?

Abstract

This article aims to raise and empirically test whether complexity and ambiguity would affect the intent to apply for public assistance in the case of South Korea. Results of regression analysis reveal that the complexity of the application process has led to a greater decline in the intent of the poor to apply, possibly because the present bias is relatively greater. These outcomes indicate that the ambiguity aversion attitude of the poor was not different from that of the non-poor. However, when ambiguity is combined with complexity, it has an additive effect, lowering the intention to apply. From these findings, understandable policy manuals should be provided to potential applicants of assistance services and multiple forms, and evidence materials should be simplified in public assistance. Finally, in terms of behavioral economics and social policy, decreasing the complexity and ambiguity could “nudge” the Non-take-up and encourage them to apply for selective welfare programs.