Social Security, benefit claiming and labor force participation

Imrohoroglu, Selahattin, and Sagiri Kitao. “Social Security, benefit claiming and labor force participation”. CRR WP 2010-2, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, March 2010. http://hdl.handle.net/2345/bc-ir:104864.
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Abstract

We build a general equilibrium model with endogenous saving, labor force participation, work hours and Social Security benefit claiming, in which overlapping generations of individuals face income, survival, and health expenditure risks in incomplete markets. We use the model to study the impact of three Social Security reforms: reductions in benefits and payroll taxes, an increase in the early retirement age from 62 to 64, and an increase in the normal retirement age from 66 to 68. We show that a reform can have a significant effect on the budget of Social Security through changes in savings as well as benefit claiming and labor force participation. When the projected aging of the population is taken into account, the case for a reform that encourages labor force participation of the elderly becomes stronger.

Title
Social Security, benefit claiming and labor force participation: A quantitative general equilibrium approach
Author
Imrohoroglu, Selahattin
Kitao, Sagiri
Center
Center for Retirement Research
Genre
working paper
Date Issued
March 2010
Publisher
Center for Retirement Research at Boston College
Series Title
CRR WP
Series Number
2010-2
Persistent Link
http://hdl.handle.net/2345/bc-ir:104864
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Social Security

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