The Social Security Earnings Test Removal. Money Saved or Money Spent by the Trust Fund?

Giovanni Mastrobuoni ()

No 25, Carlo Alberto Notebooks from Collegio Carlo Alberto

Abstract: Beneficiaries of Social Security face restrictions on how much they can earn without incurring the earnings test (ET). In 2000, President Clinton eliminated the ET between age 65 and 70. In this paper I evaluate how this removal impacts the long-term finances of the Trust Fund. I find that starting in 2006 the Social Security Administration is actually saving money and that the removal appears to be Pareto efficient. A removal of the remaining part of the ET is likely to be even less costly and to produce larger increases in labor supply and contributions.

Keywords: earnings test; social security; claiming; retirement (search for similar items in EconPapers)
JEL-codes: H55 J26 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2006
New Economics Papers: this item is included in nep-pbe
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: The Social Security Earnings Test Removal. Money Saved or Money Spent by the Trust Fund? (2006)
Working Paper: The Social Security Earnings Test Removal: Money Saved or Money Spent by the Trust Fund? (2006)
Working Paper: The Social Security Earnings Test Removal: Money Saved or Money Spent by the Trust Fund? (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:cca:wpaper:25

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