Socioeconomic Differentials in the Returns to Social Security
Returns to Social Security's Old Age and Survivors Insurance (OASI) program vary accross socioeconomic groups because of progressivity in the benefit formula, spousal and widowhood provisions, differential mortality rates, and other factors. This paper computes the rate of return to OASI contributions and the implied intra cohort transfers, distinguishing between a number of socioeconomic characteristics: males and females; blacks and whites; single persons and married couples (with several labor force participation scenarios); and low, medium, and high incomes.
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