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Social Security And Retirees’ Decision To Work

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Author Info
Mark E. Votruba (Case Western Reserve University)
Abstract

Non-linearities in the Social Security benefits formula are used to estimate the effect of benefit size on the probability married beneficiaries work after initiating benefits. Consistent with economic theory, benefit size has a significant, negative effect on the probability of post-retirement work. A 10% increase in benefit size decreases the probability of work 3-4 percentage points for recently retired husbands (from a mean of 25.5%) and 2-3 percentage points for recently retired wives (from a mean of 12.8%). For both spouses, the effect erodes in later years of retirement.

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File URL: http://www.princeton.edu/~ceps/workingpapers/95votruba.pdf
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Publisher Info
Paper provided by Princeton University, Department of Economics, Center for Economic Policy Studies. in its series Working Papers with number 107.

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Date of creation: Nov 2003
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Handle: RePEc:pri:cepsud:107

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Related research
Keywords: Social Security; retirement; labor supply;

Find related papers by JEL classification:
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
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

Cited by:
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  1. Hugo Benitez-Silva & Frank Heiland, 2008. "Early Retirement, Labor Supply, and Benefit Withholding: The Role of the Social Security Earnings Test," Working Papers wp183, University of Michigan, Michigan Retirement Research Center. [Downloadable!]
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This page was last updated on 2010-3-13.

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