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Does Old-Age Social Security Help Children? The Impact of Social Security on Grandchild Resources

Author

Listed:
  • Lucie Schmidt
  • Lara Shore-Sheppard
  • Tara Watson

Abstract

Though Social Security is typically considered a program to support retirees, nearly one in ten children live in a home reporting Social Security income, twice as many as traditional cash welfare. We use the sharp increase in eligibility for Social Security benefits at age 62 to investigate the role that Social Security plays in childhood economic resources among children who live with their grandparents. We do not find that Social Security eligibility increases household income on average, but it is associated with reductions in deep poverty. We also see increased availability of household members' time for home production.

Suggested Citation

  • Lucie Schmidt & Lara Shore-Sheppard & Tara Watson, 2025. "Does Old-Age Social Security Help Children? The Impact of Social Security on Grandchild Resources," AEA Papers and Proceedings, American Economic Association, vol. 115, pages 126-131, May.
    • Handle: RePEc:aea:apandp:v:115:y:2025:p:126-31
    DOI: 10.1257/pandp.20251102
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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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