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The Hidden Resources of Women Working Longer: Evidence from Linked Survey-Administrative Data

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  • C. Adam Bee
  • Joshua Mitchell

Abstract

Despite women’s increased labor force attachment over the lifecycle, household surveys such as the Current Population Survey Annual Social and Economic Supplement (CPS ASEC) do not show increases in retirement income (pensions, 401(k)s, IRAs) for women at older ages. We use linked survey-administrative data to demonstrate that retirement incomes are considerably underreported in the CPS ASEC and that women’s economic progress at older ages has been substantially understated over the last quarter century. Specifically, the CPS ASEC shows median household income for women age 65-69 rose 21 percent since the late 1980s, while the administrative records show an increase of 58 percent. Survey biases in women’s own incomes appear largest for women with the longest work histories. We also exploit the panel dimension of our data to follow a cohort of women and their spouses (if present) as they transition into retirement in recent years. In contrast to previous work, we find that most women do not experience noticeable drops in income up to five years after claiming social security, with retirement income playing an important role in maintaining their overall standard of living. Our results pose a challenge to the literature on the “retirement consumption puzzle” and suggest total income replacement rates are high for recent retirees.

Suggested Citation

  • C. Adam Bee & Joshua Mitchell, 2016. "The Hidden Resources of Women Working Longer: Evidence from Linked Survey-Administrative Data," NBER Working Papers 22970, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:22970
    Note: AG LS PE
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    Cited by:

    1. Meyer, Bruce D. & Mittag, Nikolas, 2017. "Using Linked Survey and Administrative Data to Better Measure Income: Implications for Poverty, Program Effectiveness and Holes in the Safety Net," IZA Discussion Papers 10943, Institute of Labor Economics (IZA).
    2. Bruce D. Meyer & Nikolas Mittag, 2019. "An Empirical Total Survey Error Decomposition Using Data Combination," NBER Working Papers 25737, National Bureau of Economic Research, Inc.
    3. Meyer, Bruce D. & Mittag, Nikolas, 2019. "Combining Administrative and Survey Data to Improve Income Measurement," IZA Discussion Papers 12266, Institute of Labor Economics (IZA).
    4. Bruce Meyer & Nikolas Mittag, 2017. "Using Linked Survey and Administrative Data to Better Measure Income: Implications for Poverty, Program Effectiveness and Holes in the Safety Net," Working Papers 2017-075, Human Capital and Economic Opportunity Working Group.
    5. Meyer, Bruce D. & Mittag, Nikolas, 2019. "An Empirical Total Survey Error Decomposition Using Data Combination," IZA Discussion Papers 12151, Institute of Labor Economics (IZA).
    6. Quentin Brummet & Denise Flanagan-Doyle & Joshua Mitchell & John Voorheis & Laura Erhard & Brett McBride, 2018. "Investigating the Use of Administrative Records in the Consumer Expenditure Survey," CARRA Working Papers 2018-01, Center for Economic Studies, U.S. Census Bureau.
    7. Bruce D. Meyer & Nikolas Mittag, 2019. "Combining Administrative and Survey Data to Improve Income Measurement," NBER Working Papers 25738, National Bureau of Economic Research, Inc.
    8. Congressional Budget Office, 2017. "Measuring the Adequacy of Retirement Income: A Primer," Reports 53191, Congressional Budget Office.

    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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