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Do Stronger Age Discrimination Laws Make Social Security Reforms More Effective?

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  • David Neumark

    (University of California, Irvine National Bureau of Economic Research)

  • Joanne Song

    (University of California, Irvine)

Abstract

Supply-side Social Security reforms to increase employment and delay benefit claiming among older individuals may be frustrated by age discrimination. We test for policy complementarities between supply-side Social Security reforms and demand-side efforts to deter age discrimination, specifically studying whether stronger state-level age discrimination protections enhanced the impact of the increases in the Social Security Full Retirement Age (FRA) that occurred in the past decade. The evidence indicates that, for older individuals who were “caught” by the increase in the FRA, benefit claiming reductions and employment increases were sharper in states with stronger age discrimination protections.

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File URL: http://www.mrrc.isr.umich.edu/publications/Papers/pdf/wp249.pdf
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Bibliographic Info

Paper provided by University of Michigan, Michigan Retirement Research Center in its series Working Papers with number wp249.

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Length: 52 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:mrr:papers:wp249

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  1. Joanna Lahey, 2008. "State Age Protection Laws and the Age Discrimination in Employment Act," Journal of Law and Economics, University of Chicago Press, vol. 51(3), pages 433-460, 08.
  2. Barry T. Hirsch & David A. Macpherson & Melissa A. Hardy, 2000. "Occupational age structure and access for older workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(3), pages 401-418, April.
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  8. Giovanni Mastrobuoni, 2006. "Labor Supply Effects of the Recent Social Security Benefit Cuts: Empirical Estimates Using Cohort Discontinuities," Working Papers 893, Princeton University, Department of Economics, Industrial Relations Section..
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  13. Laitner, John & Silverman, Dan, 2012. "Consumption, retirement and social security: Evaluating the efficiency of reform that encourages longer careers," Journal of Public Economics, Elsevier, vol. 96(7-8), pages 615-634.
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  16. Adams, Scott J., 2004. "Age discrimination legislation and the employment of older workers," Labour Economics, Elsevier, vol. 11(2), pages 219-241, April.
  17. Behaghel, Luc & Blau, David M., 2010. "Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age," IZA Discussion Papers 5310, Institute for the Study of Labor (IZA).
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  19. Christopher Cornwell & Stuart Dorsey & Nasser Mehrzad, 1991. "Opportunistic Behavior by Firms in Implicit Pension Contracts," Journal of Human Resources, University of Wisconsin Press, vol. 26(4), pages 704-725.
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  21. Jonathan F. Pingle, 2006. "Social Security's delayed retirement credit and the labor supply of older men," Finance and Economics Discussion Series 2006-37, Board of Governors of the Federal Reserve System (U.S.).
  22. Richard W. Johnson & David Neumark, 1996. "Age Discrimination, Job Separation, and Employment Status of Older Workers: Evidence from Self-Reports," NBER Working Papers 5619, National Bureau of Economic Research, Inc.
  23. James E. Duggan & Christopher J. Soares, 2002. "Actuarial Nonequivalence in Early and Delayed Social Security Benefit Claims," Public Finance Review, , vol. 30(3), pages 188-207, May.
  24. Kahn, James A., 1988. "Social security, liquidity, and early retirement," Journal of Public Economics, Elsevier, vol. 35(1), pages 97-117, February.
  25. Michael Fix & Raymond Struyk, 1993. "Clear and convincing evidence: Measurement of discrimination in america," Natural Field Experiments 00241, The Field Experiments Website.
  26. Bloch, Farrell, 1994. "Antidiscrimination Law and Minority Employment," University of Chicago Press Economics Books, University of Chicago Press, edition 0, number 9780226059839, March.
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Cited by:
  1. David Neumark & Patrick Button, 2013. "Did Age Discrimination Protections Help Older Workers Weather the Great Recession?," NBER Working Papers 19216, National Bureau of Economic Research, Inc.
  2. Neumark, David & Button, Patrick, 2014. "Age discrimination and the Great Recession," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
  3. David Neumark & Joanne Song, 2012. "Barriers to Later Retirement: Increases in the Full Retirement Age, Age Discrimination, and the Physical Challenges of Work," Working Papers wp265, University of Michigan, Michigan Retirement Research Center.

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