Redistribution Under the Current Social Security System

Abstract

This article describes how the current Social Security system redistributes income. It begins by describing the role Social Security has played in lifting the elderly, and particularly women, minorities, and lower-income workers, out of poverty. It then analyzes how four elements of the current system: (1) the method by which benefits are paid; (2) the progressive benefit formula; (3) disability benefits; and (4) auxiliary benefits, affect these groups.

JEL Classification: H55, J26