The unexpected impact of geographic access on take-up of social benefits

Among the factors identified to account for non-take-up of social benefits, there has been limited research on ‘process costs’, particularly regarding the impact of geographic access. Using Israeli data on field office openings from 1993 to 2021, this paper investigates the impact of geographic access on the take-up of the five largest social security programs in Israel. Based on staggered openings and closings of social security field offices, we find that geographic access has no significant impact on the take-up of either automatic enrollment programs, such as child allowances, or non-automatic programs, such as disability benefits. These findings suggest that the effect of geographic access on the take-up of social benefits may have been overstated in previous studies. We propose the following hypothesis to explain the surprising findings: If enhanced geographic access is driven by political favoritism, opening of new service points may lead to the misallocation of resources and, in effect, increase administrative burdens, thereby undermining rather than improving the take-up of social benefits.