The Effects of Collecting Income Taxes on Social Security Benefits

Jones, John Bailey; Li, Yue

doi:10.21144/wp17-02

Cited by 4 publications

(2 citation statements)

References 28 publications

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“…This regime may significantly increase the marginal income tax rate for older households with potential effects on labor supply. Interestingly, although Burman, Coe, Pierce, and Tian (2014) do not find evidence of bunching at either of the statutory thresholds (except among some of the self-employed), Jones and Li (2017) find that the aggregate effects of benefits taxation occur mainly along the extensive margin and that they are substantial.…”

Section: Social Securitymentioning

confidence: 95%

The effect of public pensions on women's labor market participation over a full life cycle

Sánchez-Marcos¹,

Bethencourt²

2018

Quantitative Economics

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Spousal and survivor pensions are two important provisions of the US Social Security pension system. In this paper, we assess the impact of these benefits on the female employment rate in the context of a full life‐cycle model in which households decide on female labor supply and savings. One important aspect of our model is that we allow for returns to labor market experience so that participation decisions affect not only current earnings and Social Security pension eligibility but also future earnings. We quantify the effect on female labor supply and on household inequality of (i) removing spousal benefit, (ii) removing both spousal and survivor pension benefits, and (iii) extending from 35 to 40 the number of periods of the working career that are considered when calculating the retired worker's pension. We find that reforms (i) and (ii) significantly increase female employment throughout the life cycle, whereas reform (iii) has a very mild effect. The effect of (ii) on income inequality in older household is large, whereas the effect on consumption inequality is small. All three reforms have substantial effects on Social Security expenditure and fiscal revenues.

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Section: Social Securitymentioning

confidence: 95%

The effect of public pensions on women's labor market participation over a full life cycle

Sánchez-Marcos¹,

Bethencourt²

2018

Quantitative Economics

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“…9 For the aim of simplicity, the model abstracts from the earnings test, the benefit taxation of Social Security, and the choice of retirement and of claiming Social Security benefits. See, for example,İmrohoroǧlu and Kitao (2012) and Jones and Li (2018) for a model that incorporates these features. 10 SBDC eligibility requires a person to be "fully insured" or "currently insured"; OAI and SBAS eligibility requires a person to be "fully insured."…”

Section: 2mentioning

confidence: 99%

Economic Analysis of Social Security Survivors Insurance

2018

Int Economic Review

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This article develops a heterogeneous agents model to analyze the effects of Social Security survivors insurance. The model features a negative mortality–income gradient, asymmetric information of individual mortality rates, and a warm‐glow bequest motive that varies by age and family structure. The model matches life‐cycle changes in life insurance coverage and generates advantageous selection in the insurance market. For male agents, reducing survivors benefits for dependent children generates welfare losses, whereas reducing survivors benefits for aged spouses produces welfare gains. The opposing welfare results are explained by differences in the timing of benefits and in the funding cost.

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Health, Health Insurance, and Retirement: A Survey

French

Jones

2017

Annu. Rev. Econ.

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The degree to which retirement decisions are driven by health is a key concern for both academics and policymakers. In this paper we survey the economic literature on the health-retirement link in developed countries. We describe the mechanisms through which health affects labor supply and discuss how they interact with public pensions and public health insurance. The historical evidence suggests that health is not the primary source of variation in retirement across countries and over time. Furthermore, declining health with age can only explain a small share of the decline in employment near retirement age. Health considerations nonetheless play an important role, especially in explaining cross-sectional variation in employment and other outcomes within countries. We review the mechanisms through which health affects retirement and discuss recent empirical analyses.

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The Effects of Collecting Income Taxes on Social Security Benefits

Cited by 4 publications

References 28 publications

The effect of public pensions on women's labor market participation over a full life cycle

The effect of public pensions on women's labor market participation over a full life cycle

Economic Analysis of Social Security Survivors Insurance

Health, Health Insurance, and Retirement: A Survey

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