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- W2318854580 abstract "The benefits received under Social Security Old-Age and Survivors Insurance depend upon the earnings history of the earnings history of the individual. Several recent papers have argued that the Social Security payroll tax has a high yield when benefits are collected upon retirement, (cf. Burkhauser andTurner [1981a] and Blinder, Gordon and Wise [1980]). Consequently, Social Security provides a subsidy to work effort during a person's working life. This paper incorporates this subsidy into a life-cycle framework in order to examine the effects of Social Security on an individual's lifetime labor decision. The individual's life-cycle labor-supply decision includes the decision on when to retire. Several recent life-cycle models of Social Security (Sheshinski [1978], Diamond and Mirrless [1978] and Crawford and Lilien [1981]) have modeled retirement as a labor-force-participation decision in which an individual must choose at each point in time whether or not to remain in the labor force. However, the individual is not given the option of working part time. Is is shown in this paper that this restriction distorts the individual's optimal retirement decision. In the present paper, labor supply is completely variable. In order to focus on the effects of Social Security on the optimal labor path, a in which the optimal labor path is constant over the life-cycle is first presented. This serves as a base model upon which the effects of several variations can be observed." @default.
- W2318854580 created "2016-06-24" @default.
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- W2318854580 date "1986-01-01" @default.
- W2318854580 modified "2023-10-16" @default.
- W2318854580 title "Social Security As a Wage Subsidy Over The Life Cycle" @default.
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- W2318854580 doi "https://doi.org/10.1057/gpp.1986.5" @default.
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