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Social Security's delayed retirement credit and the labor supply of older men

  • Jonathan F. Pingle

This paper presents estimates of the impact of Social Security's Delayed Retirement Credit on the employment rates of older men. The credit raises lifetime social security benefit payments for recipients who delay receiving benefits after age 65 and offers a rare and important test of whether labor supply incentives built in to the program can promote work at older ages. The results suggest that the increased incentives raised employment among workers over age 65. In addition, the recent increases in social security's Normal Retirement Age also appear to be pushing up labor supply.

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File URL: http://www.federalreserve.gov/pubs/feds/2006/200637/200637abs.html
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File URL: http://www.federalreserve.gov/pubs/feds/2006/200637/200637pap.pdf
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Paper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 2006-37.

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Date of creation: 2006
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Handle: RePEc:fip:fedgfe:2006-37
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