HOW WELL DID SOCIAL SECURITY MITIGATE THE EFFECTS OF THE GREAT RECESSION?

• 成果类型: Article
• 署名作者: Peterman, William B.; Sommer, Kamila
• 署名单位: Federal Reserve System - USA; Federal Reserve System Board of Governors
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12392
• 发表日期: 2019
• 页码: 1433-1466
• 关键词: labor-force; RISK; welfare; retirement; insurance; REFORM

摘要

Using a computational life cycle model, this article assesses how Social Security affects the welfare of different types of individuals during the Great Recession. Overall, we find that Social Security reduces the average welfare losses for agents alive at the time of the Great Recession by the equivalent of 1.4% of expected future lifetime consumption. Moreover, we show that although the program mitigates some of the welfare losses for most agents, it is particularly effective at mitigating the losses for agents who are poorer and/or older at the time of the shock.