IDEAS home Printed from
   My bibliography  Save this article

The Effect of Social Security on Retirement in the Early 1970s


  • Michael D. Hurd
  • Michael J. Boskin


We analyze detailed longitudinal data on a cohort of males aged 58–67 in 1969–1973, a period of substantial increases in real Social Security benefits. We find the following: (1) the accelerating decline in labor force participation of elderly men in 1969–1973 can be explained by the large increase in real Social Security benefits; (2) there is evidence of a liquidity constraint effect for an important subgroup of the elderly; (3) the magnitude of this induced retirement effect is large enough that ignoring it can lead to serious underestimation of the fiscal implications of changes in benefit provisions. Our results are interpreted in the historical context of a particular cohort undergoing major, unanticipated transfers of wealth; the steady-state effects of Social Security on retirement may not be the same.

Suggested Citation

  • Michael D. Hurd & Michael J. Boskin, 1984. "The Effect of Social Security on Retirement in the Early 1970s," The Quarterly Journal of Economics, Oxford University Press, vol. 99(4), pages 767-790.
  • Handle: RePEc:oup:qjecon:v:99:y:1984:i:4:p:767-790.

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:qjecon:v:99:y:1984:i:4:p:767-790.. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.