Partial retirement and the earnings test
This paper studies the effects of the earnings test on retirement behavior. The earnings tests of most social security systems tax post-retirement earnings at a relatively high level and do not lead to actuarially fair increases in future benefits. This results in discouragement of partial retirement. The paper shows that a reduction in the earnings test's tax rate is likely to increase part-time work; and that in special cases the increase in work effort may even lead to a reduction in the net transfer from social security to the individual.
(This abstract was borrowed from another version of this item.)
Volume (Year): 57 (1993)
Issue (Month): 3 (October)
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- Gary Burtless & Robert A. Moffitt, 1986. "Social Security, Earnings Tests, and Age at Retirement," Public Finance Review, , vol. 14(1), pages 3-27, January.
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in: Econometric Studies in Public Finance, pages 245-276
National Bureau of Economic Research, Inc.
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0187, National Bureau of Economic Research, Inc.
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- Diamond, P. A. & Hausman, J. A., 1984. "Individual retirement and savings behavior," Journal of Public Economics, Elsevier, vol. 23(1-2), pages 81-114.
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