Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Levy says ACA has helped increase rates of insured, but rates still lowest among poor

Bruch reveals key decision criteria in making first cuts on dating sites

Murphy on extending health support via a smart phone and JITAI

More News

Highlights

U-M ranked #4 in USN&WR's top public universities

Frey's new report explores how the changing US electorate could shape the next 5 presidential elections, 2016 to 2032

U-M's Data Science Initiative offers expanded consulting services via CSCAR

Elizabeth Bruch promoted to Associate Professor

Next Brown Bag

Mon, Sept 19 at noon:
Paradox of Unintended Pregnancy, Jennifer Barber

Consumption, retirement and social security: Evaluating the efficiency of reform that encourages longer careers

Archived Abstract of Former PSC Researcher

Laitner, John, and Daniel Silverman. 2012. "Consumption, retirement and social security: Evaluating the efficiency of reform that encourages longer careers." Journal of Public Economics, 96(7-8): 615-634.

This paper proposes and analyzes a Social Security reform in which individuals no longer face the OASI payroll tax after, say, age 54 or a career of 34 years, and their subsequent earnings have no bearing on their benefits. We first estimate parameters of a life-cycle model. Our specification includes non-separable preferences and possible disability. It predicts a consumption-expenditure change at retirement. We use the magnitude of the expenditure change, together with households' retirement-age decisions, to identify key structural parameters. The estimated magnitude of the change in consumption-expenditure depends importantly on the treatment of consumption by adult children of the household. Simulations indicate that the reform could increase retirement ages one year or more, equivalent variations could average more than $4000 per household, and income tax revenues per household could increase by more than $14,000. (C) 2012 Elsevier B.V. All rights reserved.

DOI:10.1016/j.jpubeco.2012.02.005 (Full Text)

Browse | Search : All Pubs | Next