IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v33y1980i4p484-492.html
   My bibliography  Save this article

The Early Acceptance of Social Security: An Asset Maximization Approach

Author

Listed:
  • Richard V. Burkhauser

Abstract

This paper, using a sample from the 1973 Social Security Exact Match File, tests the importance of economic factors in the decision of male workers to take social security (OASI) benefits at age 62. Previous studies of this decision have concentrated on the flow of pension benefits available to the worker in a single year, but this study emphasizes the asset nature of such benefits. The potential loss in market earnings when OASI benefits are accepted is weighed against the change in the total potential value of private pension and OASI benefits if retirement is postponed. The present value of the entire potential stream of benefits emerges as more important theoretically and empirically than the value of annual benefits immediately available to the worker.

Suggested Citation

  • Richard V. Burkhauser, 1980. "The Early Acceptance of Social Security: An Asset Maximization Approach," ILR Review, Cornell University, ILR School, vol. 33(4), pages 484-492, July.
  • Handle: RePEc:sae:ilrrev:v:33:y:1980:i:4:p:484-492
    as

    Download full text from publisher

    File URL: http://ilr.sagepub.com/content/33/4/484.abstract
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. John P. Rust, 1989. "A Dynamic Programming Model of Retirement Behavior," NBER Chapters, in: The Economics of Aging, pages 359-404, National Bureau of Economic Research, Inc.
    2. repec:eee:labchp:v:1:y:1986:i:c:p:305-355 is not listed on IDEAS
    3. Olivia S. Mitchell & Gary S. Fields, 1981. "The Effects of Pensions and Earnings on Retirement: A Review Essay," NBER Working Papers 0772, National Bureau of Economic Research, Inc.
    4. repec:ilo:ilowps:272881 is not listed on IDEAS
    5. Robert L. Clark & Joseph F. Quinn, 1999. "Effects of Pensions on Labor Markets and Retirement," Boston College Working Papers in Economics 431, Boston College Department of Economics.
    6. Stock, James H & Wise, David A, 1990. "Pensions, the Option Value of Work, and Retirement," Econometrica, Econometric Society, vol. 58(5), pages 1151-1180, September.
    7. Bernheim, B. Douglas, 2002. "Taxation and saving," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.),Handbook of Public Economics, edition 1, volume 3, chapter 18, pages 1173-1249, Elsevier.
    8. James H. Stock & David A. Wise, 1990. "The Pension Inducement to Retire: An Option Value Analysis," NBER Chapters, in: Issues in the Economics of Aging, pages 205-230, National Bureau of Economic Research, Inc.
    9. Leora Friedberg, 2000. "The Labor Supply Effects of the Social Security Earnings Test," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 48-63, February.
    10. Freudenberg, Christoph & Laub, Natalie & Sutor, Tim, 2018. "Pension decrement rates across Europe – Are they too low?," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 35-45.
    11. Robin L. Lumsdaine & David A. Wise, 1994. "Aging and Labor Force Participation: A Review of Trends and Explanations," NBER Chapters, in: Aging in the United States and Japan: Economic Trends, pages 7-42, National Bureau of Economic Research, Inc.
    12. Clark, Randolph Lee. & Anker, Richard,, 1989. "Labour force participation rates of older persons: an international comparison," ILO Working Papers 992728813402676, International Labour Organization.
    13. Catherine Cazals, 1992. "Évolution des individus âgés sur le marché du travail aux États-Unis. Un modèle à risques concurrents," Revue Économique, Programme National Persée, vol. 43(3), pages 487-508.
    14. John Bound, 1989. "Self-Reported vs. Objective Measures of Health in Retirement Models," NBER Working Papers 2997, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:sae:ilrrev:v:33:y:1980:i:4:p:484-492. 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: (SAGE Publications). General contact details of provider: http://www.ilr.cornell.edu .

    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.