The role of earnings and financial risk in distributional analyses of Social Security reform measures
AbstractThe Social Security Trustees project that the Social Security program faces longterm financing difficulties. Several proposals that have been offered to shore-up the finances of the Social Security program would create individual retirement accounts funded with part of the payroll tax. The authors of many of these proposals claim that future beneficiaries will be better off under their new system than under the current system. This study examines the consequences of differing earnings patterns and year-to-year differences in asset returns have for Social Security retired worker benefits in three Social Security reform proposals. Incorporating both actual earnings histories and variation in asset returns shows that none of the three individual account plans can always deliver benefits that are higher than payable current-law benefits. © 2006 by the Association for Public Policy Analysis and Management
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Journal of Policy Analysis and Management.
Volume (Year): 25 (2006)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www3.interscience.wiley.com/journal/34787/home
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Angus S. Deaton & Pierre-Olivier Gourinchas & Christina Paxson, 2002.
"Social Security and Inequality over the Life Cycle,"
in: The Distributional Aspects of Social Security and Social Security Reform, pages 115-148
National Bureau of Economic Research, Inc.
- Angus Deaton & Pierre-Olivier Gourinchas & Christina Paxson, 2000. "Social Security and Inequality over the Life Cycle," NBER Working Papers 7570, National Bureau of Economic Research, Inc.
- Andrew Au & Olivia S. Mitchell & John W. R. Phillips, 2004. "Modeling Lifetime Earnings Paths: Hypothetical versus Actual Workers," Working Papers wp074, University of Michigan, Michigan Retirement Research Center.
- Gary Burtless, 2003. "What Do We Know About the Risk of Individual Account Pensions? Evidence from Industrial Countries," American Economic Review, American Economic Association, vol. 93(2), pages 354-359, May.
If references are entirely missing, you can add them using this form.