The Employment Effects of the Social Security Earnings Test / Alexander M. Gelber, Damon Jones, Daniel W. Sacks, Jae Song.

Format:

Book

Author/Creator:

Gelber, Alexander M.

Contributor:

National Bureau of Economic Research.

Jones, Damon.

Sacks, Daniel W.

Song, Jae.

Series:

Working Paper Series (National Bureau of Economic Research) no. w26696.

NBER working paper series no. w26696

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2020.

Summary:

We investigate the impact of the Social Security Annual Earnings Test (AET) on the employment decisions of older Americans. The AET reduces Social Security benefits by one dollar for every two dollars earned above the exempt amount. Using a differences-in-differences design, we find that the employment rate of those predicted to become subject to the AET decreases substantially relative to those not predicted to become subject to it. The point estimates suggest that the AET reduces the employment rate of Americans aged 63-64 by at least 1.2 percentage points.

Notes:

Print version record

January 2020.