The Employment Effects of the Social Security Earnings Test

Alexander Gelber, Damon Jones, Daniel W. Sacks and Jae Song

Journal of Human Resources, 2022, vol. 57, issue 2, 341-371

Abstract: We investigate the impact of the Social Security annual earnings test (AET) on the employment decisions of older Americans. The AET reduces Social Security benefits by one dollar for every two dollars earned above the exempt amount. Using a differences-in-differences design, we find that the employment rate of those predicted to become subject to the AET decreases substantially relative to those not predicted to become subject to it. The point estimates suggest that the AET reduces the employment rate of Americans aged 63-64 by at least 1.2 percentage points.

JEL-codes: H31 H55 J22 (search for similar items in EconPapers)
Date: 2022
Note: DOI: 10.3368/jhr.57.2.1018-9830R2
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://jhr.uwpress.org/cgi/reprint/57/2/341
A subscription is required to access pdf files. Pay per article is available.

Related works:
Working Paper: The Employment Effects of the Social Security Earnings Test (2020)
Working Paper: The Employment Effects of the Social Security Earnings Test (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:57:y:2022:i:2:p:341-371

Access Statistics for this article

More articles in Journal of Human Resources from University of Wisconsin Press
Bibliographic data for series maintained by ().