Social Security Reforms: Benefit Claiming, Labor Force Participation, and Long-run Sustainability

• 成果类型: Article
• 署名作者: Imrohoroglu, Selahattin; Kitao, Sagiri
• 署名单位: University of Southern California; City University of New York (CUNY) System; Hunter College (CUNY)
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.4.3.96
• 发表日期: 2012
• 页码: 96-127
• 关键词: health-insurance; retirement; BEHAVIOR; earnings; WEALTH; MODEL

摘要

This paper develops a general equilibrium life-cycle model with endogenous labor supply in both intensive and extensive margins, consumption, saving, and benefit claiming to measure the long-run effects of a proposed Social Security reform. Agents in the model face medical expenditure, wage, health, and survival shocks. Raising the normal retirement age by two years increases labor supply by 2.8 percent and the capital stock by 12.6 percent, showing that both margins of adjustment are critical. General equilibrium effects are important to account for the effects of reform on savings, although the effects on labor supply are less important.