The Effects of Differential Income Replacement and Mortality on U.S. Social Security Redistribution
Li Tan () and
Additional contact information
Li Tan: Department of Economics at the University of Missouri
No 1701, Working Papers from Department of Economics, University of Missouri
We study redistribution via the United States Social Security retirement system for cohorts of men born during the second half of the 20th century. Our focus is on redistribution across race and education groups. The cohorts we study are younger than cohorts studied in previous, similar research and thus more exposed to recent increases in earnings inequality. All else equal, this should increase the degree of progressivity of Social Security redistribution due to the structure of the benefit formula. However, we find that redistribution is only modestly progressive for individuals born as late as 1980. Differential mortality rates across race and education groups are the primary explanation. While black-white mortality gaps have narrowed some in recent years, they remain large and dull progressivity. Mortality gaps by education level are also large and unlike the gaps by race, they are widening, which puts additional regressive pressure on Social Security redistribution.
Keywords: Earnings forecast; Bayesian forecasting; Social Security; Social Security progressivity; Social Security projections (search for similar items in EconPapers)
JEL-codes: H55 J18 J32 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2017-01, Revised 2019-06
New Economics Papers: this item is included in nep-age, nep-for, nep-lab, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://economics.missouri.edu/sites/default/files ... _062019_revised2.pdf (application/pdf)
Journal Article: The Effects of Differential Income Replacement and Mortality on U.S. Social Security Redistribution (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:umc:wpaper:1701
Access Statistics for this paper
More papers in Working Papers from Department of Economics, University of Missouri Contact information at EDIRC.
Bibliographic data for series maintained by Valerie Kulp ().