Welfare fraud and welfare stigma

A model of participants' take-up of welfare benefits is developed using welfare fraud and welfare stigma as reference points. Results of the model showed stigma as the significant factor that determines participation in a welfare program, underscoring the effects of informal controls, even under conditions of differing stigma perception and honesty characteristics of participants. The result implies that informal controls can be used in the formulation of effective screening strategies to ensure that the qualified needy enters the welfare program.