Household Labor Supply and the Value of Social Security Survivors Benefits

• 成果类型: Article
• 署名作者: Coyne, David; Fadlon, Itzik; Ramnath, Shanthi P.; Tong, Patricia K.
• 署名单位: United States Department of the Treasury; University of California System; University of California San Diego; National Bureau of Economic Research; Federal Reserve System - USA; Federal Reserve Bank - Chicago; RAND Corporation
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20190813
• 发表日期: 2024
• 页码: 1248-1280
• 关键词: LIFE-INSURANCE HOLDINGS; income-tax; economic consequences; consumption; HEALTH; retirement; liquidity; poverty; utility

摘要

We combine quasi -experimental variation in spousal death and age eligibility for survivors benefits using US tax records to study the effects on American households' labor supply and the design of social security's survivors insurance. Benefit eligibility at the exact age of 60 induces sharp reductions in the labor supply of newly widowed households , highlighting the value of survivors benefits and the liquidity they provide following the shock. Among eligible widows , the spousal death event induces no increases in labor supply , suggesting little residual need to self -insure. Using theory , we underscore the program's protective insurance role and its high valuation among survivors.