IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Removing the Disincentives for Long Careers in the Social Security and Medicare Benefit Structure

Listed author(s):
  • Gopi Shah Goda


    (Stanofrd University)

  • John Shoven


    (Stanford Institue for Economic Policy Research, Stanford University)

  • Sita Slavov

    (Economics Department, Occidental College)

When Social Security was instituted in 1935, the period life expectancy at age 20 for males was 66 and for females 69. Today, 20-year-old males have a period life expectancy of 76 and females, 80. This increase in life expectancy has been accompanied by a corresponding improvement in health at all ages. Cutler, Liebman, and Smyth (2005) find that, in terms of mortality, men at age 68 in 2000 have roughly the same mortality risk as men at age 62 in 1960. Thus, at a same age, men in the year 2000 are roughly six years younger. In terms of self assessed health status, they find that the difference is even larger, approximately ten years. Their bottom line is, “Our best guess is that people aged 62 in the 1960s are in equivalent health to people aged 70 or more today.” In related work, Shoven (2004) suggested that the age of elderly people is more appropriately measured by remaining life expectancy than by years since birth. In his most recent work, Shoven (2007) introduces the concept of “real ages” in contrast to “nominal ages” with real ages depending on mortality risk rather than years since birth.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Stanford Institute for Economic Policy Research in its series Discussion Papers with number 08-058.

in new window

Date of creation: Nov 2008
Handle: RePEc:sip:dpaper:08-058
Contact details of provider: Postal:
366 Galvez Street, Stanford, California 94305-6015

Phone: (650) 725-1874
Fax: (650) 723-8611
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Gary Burtless & Joseph F. Quinn, 2002. "Is Working Longer the Answer for an Aging Workforce?," Boston College Working Papers in Economics 550, Boston College Department of Economics.
  2. Feldstein, Martin & Samwick, Andrew A., 1992. "Social Security Rules and Marginal Tax Rates," National Tax Journal, National Tax Association, vol. 45(1), pages 1-22, March.
  3. Jonathan Gruber & David Wise, 1997. "Social Security Programs and Retirement Around the World: Introduction and Summary of Papers by..," NBER Working Papers 6134, National Bureau of Economic Research, Inc.
  4. Robert Fenge & Silke Übelmesser & Martin Werding, 2002. "Second-best Properties of Implicit Social Security Taxes: Theory and Empirical Evidence," CESifo Working Paper Series 743, CESifo Group Munich.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sip:dpaper:08-058. 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: (Anne Shor)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.