NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Social Security Incentives for Retirement

Courtney Coile, Jonathan Gruber

NBER Working Paper No. 7651
Issued in April 2000
NBER Program(s):   PE

We present a detailed analysis of the incentives that Social Security provides for continued work at older ages. We do so using information on older males from the Health and Retirement Study over the 1980-1997 period to calculate the changes in the present discounted value of Social Security entitlements from additional work at each age. We find that the median male worker faces a small tax on work at ages 55-61, a near zero tax at ages 62-64, and a large tax at ages 65-69. However, there is significant heterogeneity in tax rates. We also document significant non-monotonicities in the accrual of Social Security entitlements with additional work, and suggest a more appropriate measure of incentive effects that considers accruals over not just the next year but future years as well.

download in pdf format
   (234 K)

email paper

This paper is available as PDF (234 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w7651

Published: Social Security Incentives for Retirement, Courtney Coile, Jonathan Gruber. in Themes in the Economics of Aging, Wise. 2001

Users who downloaded this paper also downloaded these:
Coile and Gruber w7830 Social Security and Retirement
Coile, Diamond, Gruber, and Jousten w7318 Delays in Claiming Social Security Benefits
Gruber and Wise w9407 Social Security Programs and Retirement Around the World: Micro Estimation
Kunreuther and Michel-Kerjan w10870 Policy Watch: Challenges for Terrorism Risk Insurance in the United States
Coile and Gruber The Effect of Social Security on Retirement in the United States
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us