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Nudging Timely Wage Reporting: Field Experimental Evidence from the U.S. Supplemental Security Income Program

Author

Listed:
  • C. Yiwei Zhang

    (Department of Consumer Science, University of Wisconsin-Madison, Madison, Wisconsin 53706)

  • Jeffrey Hemmeter

    (Office of Research, Demonstration, and Employment Support, Social Security Administration, Baltimore, Maryland 21235)

  • Judd B. Kessler

    (Business Economics and Public Policy Department, The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104; National Bureau of Economic Research, Cambridge, Massachusetts 02138)

  • Robert D. Metcalfe

    (National Bureau of Economic Research, Cambridge, Massachusetts 02138; Department of Economics, University of Southern California, Los Angeles, California 90089)

  • Robert Weathers

    (Office of Retirement and Disability Policy, Social Security Administration, Baltimore, Maryland 21235)

Abstract

We study a large-scale ( n = 50,000) natural field experiment implemented by the U.S. Social Security Administration aimed at increasing the timely and accurate self-reporting of wages by Supplemental Security Income (SSI) recipients. A letter reminding SSI recipients of their wage reporting responsibilities significantly increased both the likelihood of reporting any earnings and the total earnings reported. However, the specific letter content—providing social information or highlighting the salience of penalties—had no systematic effect. We develop a conservative estimate that the letters generated roughly $5.91 in savings per dollar spent, highlighting the value of such a nudge in this important context.

Suggested Citation

  • C. Yiwei Zhang & Jeffrey Hemmeter & Judd B. Kessler & Robert D. Metcalfe & Robert Weathers, 2023. "Nudging Timely Wage Reporting: Field Experimental Evidence from the U.S. Supplemental Security Income Program," Management Science, INFORMS, vol. 69(3), pages 1341-1353, March.
    • Handle: RePEc:inm:ormnsc:v:69:y:2023:i:3:p:1341-1353
    DOI: 10.1287/mnsc.2022.4645
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