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It Sucks to Be Single! Marital Status and Redistribution of Social Security
[Female labor supply as insurance against idiosyncratic risk]

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  • Max Groneck
  • Johanna Wallenius

Abstract

In this article, we study the labour supply effects and the redistributional consequences of the US social security system. We focus particularly on auxiliary benefits, where eligibility is linked to marital status. To this end, we develop a dynamic, structural life cycle model of singles and couples, featuring uncertain marital status and survival. We account for the socio-economic gradients to both marriage stability and life expectancy. We find that auxiliary benefits have a large depressing effect on married women’s employment. Moreover, we show that a revenue neutral minimum benefit scheme would moderately reduce inequality relative to the current US system.

Suggested Citation

  • Max Groneck & Johanna Wallenius, 2021. "It Sucks to Be Single! Marital Status and Redistribution of Social Security [Female labor supply as insurance against idiosyncratic risk]," The Economic Journal, Royal Economic Society, vol. 131(633), pages 327-371.
    • Handle: RePEc:oup:econjl:v:131:y:2021:i:633:p:327-371.
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    Cited by:

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    2. Margherita Borella & Mariacristina De Nardi & Fang Yang, 2023. "Are Marriage-Related Taxes and Social Security Benefits Holding Back Female Labour Supply?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(1), pages 102-131.
    3. Yu, Zhixiu, 2024. "Why are older men working more? The role of social security," Journal of Public Economics, Elsevier, vol. 231(C).
    4. Leora Friedberg & Elliott Isaac, 2023. "Marriage in Old Age: What Can We Learn About Policy Impacts on Same-Sex Couples?," National Tax Journal, University of Chicago Press, vol. 76(3), pages 679-706.
    5. Margherita Borella & Mariacristina De Nardi & Fang Yang, 2017. "Marriage-related Policies in an Estimated Life-cycle Model of Households’ Labor Supply and Savings for Two Cohorts," Working Papers wp371, University of Michigan, Michigan Retirement Research Center.
    6. Mariacristina De Nardi & Giulio Fella & Gonzalo Paz-Pardo, 2025. "Wage Risk and Government and Spousal Insurance," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 92(2), pages 954-980.
    7. Aleksandra Kolasa, 2025. "On the effectiveness of quasi-universal transfers to older households: the case of Poland," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 23(1), pages 247-277, March.
    8. Joubert, Clement & Todd, Petra E., 2024. "Gender pension gaps in a private retirement accounts system: A dynamic model of household labor supply and savings," Journal of Econometrics, Elsevier, vol. 243(1).
    9. Bredemeier, Christian & Gravert, Jan & Juessen, Falko, 2021. "Accounting for Limited Commitment between Spouses When Estimating Labor-Supply Elasticities," IZA Discussion Papers 14226, Institute of Labor Economics (IZA).
    10. Rabaté, Simon & Tréguier, Julie, 2024. "Labour supply and survivor insurance in the Netherlands," Labour Economics, Elsevier, vol. 88(C).
    11. Martinoty, Laurine, 2022. "Partner’s income shock and female labor supply. Evidence from the repeal of Argentina’s convertibility law," World Development, Elsevier, vol. 159(C).
    12. Margherita Borella & Mariacristina De Nardi & Fang Yang, 2017. "The Effects of Marriage-Related Taxes and Social Security Benefits," NBER Working Papers 23972, National Bureau of Economic Research, Inc.
    13. Zhixiu Yu, 2021. "Why Are Older Men Working More? The Role of Social Security," Working Papers 2021-041, Human Capital and Economic Opportunity Working Group.
    14. Gordon Dahl & Katrine Loken, 2024. "Families, Public Policies, and the Labor Market," RFBerlin Discussion Paper Series 2423, ROCKWOOL Foundation Berlin (RFBerlin).
    15. Das, Debasmita, 2022. "Child-rearing, Social Security and Married Women’s Labor Supply over the Life Cycle," MPRA Paper 117614, University Library of Munich, Germany, revised 10 Sep 2022.
    16. Simon Rabaté & Julie Tréguier, 2022. "Labor Supply Effects of Survivor Insurance: Evidence from Restricted Access to Survivor Benefits in the Netherlands," CPB Discussion Paper 437, CPB Netherlands Bureau for Economic Policy Analysis.
    17. Wallenius, Johanna, 2022. "R(a)ising employment of older individuals," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    18. Dahl, Gordon & Loken, Katrine V., 2024. "Families, public policies, and the labor market," Handbook of Labor Economics,, Elsevier.

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    More about this item

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • 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
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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