It Sucks to Be Single! Marital Status and Redistribution of Social Security
Max Groneck and
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Max Groneck: University of Groningen
No 776, 2019 Meeting Papers from Society for Economic Dynamics
In this paper, we study the labor supply effects and the redistributional consequences of the U.S. social security system. We focus particularly on auxiliary benefits, where eligibility is linked to marital status. To this end, we develop a dynamic, structural life cycle model of singles and couples, featuring uncertain marital status and survival. We account for the socio-economic gradients to both marriage stability and life expectancy. We find that auxiliary benefits have a large depressing effect on married women’s employment. Moreover, we show that a revenue neutral minimum benefit scheme would moderately reduce inequality relative to the current U.S. system.
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Working Paper: It Sucks to Be Single! Marital Status and Redistribution of Social Security (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed019:776
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