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The Effect of the Social Security Earnings Test on Male Labor Supply: New Evidence from Survey and Administrative Data

The Effect of the Social Security Earnings Test on Male Labor Supply: New Evidence from Survey... Despite numerous empirical studies, there is surprisingly little agreement about whether the Social Security earnings test affects male labor supply. In this paper, we provide a comprehensive analysis of the labor supply effects of the earnings test using longitudinal administrative earnings data and more commonly used survey data. We find that the response to the earnings test in survey data is obfuscated by measurement error and labor market rigidities. Accounting for these factors, our results suggest a consistent and substantial response to the earnings test, especially for younger men. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Human Resources University of Wisconsin Press

The Effect of the Social Security Earnings Test on Male Labor Supply: New Evidence from Survey and Administrative Data

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Publisher
University of Wisconsin Press
ISSN
1548-8004

Abstract

Despite numerous empirical studies, there is surprisingly little agreement about whether the Social Security earnings test affects male labor supply. In this paper, we provide a comprehensive analysis of the labor supply effects of the earnings test using longitudinal administrative earnings data and more commonly used survey data. We find that the response to the earnings test in survey data is obfuscated by measurement error and labor market rigidities. Accounting for these factors, our results suggest a consistent and substantial response to the earnings test, especially for younger men.

Journal

Journal of Human Resources – University of Wisconsin Press

Published: Apr 4, 2012

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