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The Effect of Social Security on Early Retirement

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Author Info
Michael J. Boskin
Michael D. Hurd

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Abstract

Our purpose in the present study is to analyze a new and rich body of data on the elderly to study the supply side of the effect of social security on the early retirement decision. Toward this end, section 2 presents a brief description of some previous studies of retirement behavior. While each in its own way has been suggestive, each also (including one by one of the current authors) has its own set of problems. Section 3 details the analytical framework of the present study. We propose several types of data from which one could obtain complementary information on the labor supply behavior of the elderly, and three approaches to analyzing a given body of data. We then propose a new way of estimating retirement behavior. Section 4 discusses the data used in this study: the Social Security Administration's Retirement History Survey. Section 5 reports our empirical results, estimates of probability of early retirement and early semiretirement equations. Section 6 concludes with a brief discussion of some of the implications of the study and suggestions for future research.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0204.

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Date of creation: Jan 1980
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Publication status: published as Boskin, Michael J. and Hurd, Michael D. "The Effect of Social Security on Early Retirement." Journal of Public Economics, Vol. 10, (1978), pp. 361-377 .
Handle: RePEc:nbr:nberwo:0204

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  1. Martin Feldstein & Jeffrey B. Liebman, 2001. "Social Security," NBER Working Papers 8451, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
    • Feldstein, Martin & Liebman, Jeffrey B., 2002. "Social security," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 32, pages 2245-2324 Elsevier. [Downloadable!] (restricted)
  2. Boskin, Michael J, 1977. "Social Security and Retirement Decisions," Economic Inquiry, Oxford University Press, vol. 15(1), pages 1-25, January.
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