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The Effect of the Social Security Earnings Test on Male Labor Supply: New Evidence from Survey and Administrative Data

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Author Info
Steven J. Haider
David S. Loughran

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Abstract

Despite numerous empirical studies, there is surprisingly little agreement about whether the Social Security earnings test affects male labor supply. In this paper, we provide a comprehensive analysis of the labor supply effects of the earnings test using longitudinal administrative earnings data and more commonly used survey data. We find that the response to the earnings test in survey data is obfuscated by measurement error and labor market rigidities. Accounting for these factors, our results suggest a consistent and substantial response to the earnings test, especially for younger men.

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File URL: http://jhr.uwpress.org/cgi/reprint/43/1/57
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Publisher Info
Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 43 (2008)
Issue (Month): 1 ()
Pages:
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Handle: RePEc:uwp:jhriss:v:43:y:2008:i:1:p57-87

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  1. Satoshi Shimizutani & Takashi Oshio, 2008. "The Labor Supply Effect Of Social Security Earnings Test Revisited: New Evidence From Its Elimination And Revival In Japan," Discussion Papers 0822, Graduate School of Economics, Kobe University. [Downloadable!]
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  2. Lucie Schmidt & Purvi Sevak, 2008. "Taxes, Wages, and the Labor Supply of Older Americans," Department of Economics Working Papers 2008-16, Department of Economics, Williams College. [Downloadable!]
    Other versions:
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