Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age

Luc Behaghel and David Blau

American Economic Journal: Economic Policy, 2012, vol. 4, issue 4, 41-67

Abstract: We use a US Social Security reform as a quasi-experiment to provide evidence on framing effects in retirement behavior. The reform increased the full retirement age (FRA) from 65 to 66 in two-month increments per year of birth. We find strong evidence that the spike in the benefit claiming hazard at 65 moved in lockstep along with the FRA. Results on self-reported retirement and exit from employment go in the same direction. The responsiveness to the new FRA is stronger for people with higher cognitive skills. We interpret the findings as evidence of reference dependence with loss aversion. (JEL D91, H55, J14, J26)

JEL-codes: D91 H55 J14 J26 (search for similar items in EconPapers)
Date: 2012
Note: DOI: 10.1257/pol.4.4.41
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Citations: View citations in EconPapers (145)

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Related works:
Working Paper: Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age (2012)
Working Paper: Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age (2012)
Working Paper: Framing social security reform: Behavioral responses to changes in the full retirement age (2010)
Working Paper: Framing social security reform: Behavioral responses to changes in the full retirement age (2010)
Working Paper: Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age (2010)
Working Paper: Framing Social Security Reform: Behavioral Responses to Changes in the Full Retirement Age (2010)
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