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Do Stronger Age Discrimination Laws Make Social Security Reforms More Effective?

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  • David Neumark
  • Joanne Song

Abstract

Supply-side Social Security reforms intended to increase employment and delay benefit claiming among older individuals may be frustrated by age discrimination. We test for policy complementarities between these reforms and demand-side efforts to deter age discrimination, specifically studying whether stronger state-level age discrimination protections enhanced the impact of the 1983 Social Security reforms that increased the Full Retirement Age (FRA) and reduced benefits. The evidence indicates that, for older individuals for whom early retirement benefits fell and the FRA increased, stronger state age discrimination protections were associated with delayed benefit claiming and increases in employment, with benefit claiming pushed from 65 to the new FRA, and increased employment after age 62 and age 65 that is then curtailed at the new FRA.

Suggested Citation

  • David Neumark & Joanne Song, 2011. "Do Stronger Age Discrimination Laws Make Social Security Reforms More Effective?," NBER Working Papers 17467, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:17467
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    Citations

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    Cited by:

    1. Theodore Figinski & David Neumark, 2015. "Does Eliminating the Earnings Test Increase the Incidence of Low Income Among Older Women?," NBER Working Papers 21601, National Bureau of Economic Research, Inc.
    2. David Neumark, 2016. "Experimental Research on Labor Market Discrimination," NBER Working Papers 22022, National Bureau of Economic Research, Inc.
    3. David Neumark & Joanne Song, 2012. "Barriers to Later Retirement: Increases in the Full Retirement Age, Age Discrimination, and the Physical Challenges of Work," Working Papers wp265, University of Michigan, Michigan Retirement Research Center.
    4. David Neumark & Patrick Button, 2014. "Did Age Discrimination Protections Help Older Workers Weather the Great Recession?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 33(3), pages 566-601, June.
    5. Anne Sonnet & Hilde Olsen & Thomas Manfredi, 2014. "Towards More Inclusive Ageing and Employment Policies: The Lessons from France, The Netherlands, Norway and Switzerland," De Economist, Springer, vol. 162(4), pages 315-339, December.
    6. Brooke Helppie McFall & Amanda Sonnega & Robert J. Willis & Peter Hudomiet, 2015. "Occupations and Work Characteristics: Effects on Retirement Expectations and Timing," Working Papers wp331, University of Michigan, Michigan Retirement Research Center.
    7. David Neumark & Ian Burn & Patrick Button & Nanneh Chehras, 2016. "Do State Laws Protecting Older Workers from Discrimination Reduce Age Discrimination in Hiring? Experimental (and Nonexperimental) Evidence," Working Papers wp349, University of Michigan, Michigan Retirement Research Center.
    8. repec:spr:jlabre:v:38:y:2017:i:3:d:10.1007_s12122-017-9250-y is not listed on IDEAS
    9. David Neumark & Joanne Song & Patrick Button, 2015. "Does Protecting Older Workers from Discrimination Make It Harder to Get Hired? Revised with Additional Analysis of SIPP Data and Appendix of Disability Laws," Working Papers wp315, University of Michigan, Michigan Retirement Research Center.
    10. Ayako Kondo & Hitoshi Shigeoka, 2013. "The Effectiveness of Government Intervention to Promote Elderly Employment: Evidence from Elderly Employment Stabilization Law," Working Papers e61, Tokyo Center for Economic Research.
    11. Nishimura, Yoshinori, 2016. "Did Government Intervention on Firm’s Employment Policies Have an Effect on the Employment of Elderly Workers?," MPRA Paper 73444, University Library of Munich, Germany.
    12. Neumark, David & Button, Patrick, 2014. "Age discrimination and the Great Recession," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    13. Matthew S. Rutledge & Steven A. Sass & Jorge D. Ramos-Mercado, 2017. "How Does Occupational Access for Older Workers Differ by Education?," Journal of Labor Research, Springer, vol. 38(3), pages 283-305, September.

    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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