Social Security and Marginal Returns to Work Near Retirement

Social Security Issue Paper No. 2009-02

20 Pages Posted: 17 Jul 2009

See all articles by Gayle Reznik

Gayle Reznik

U.S. Social Security Administration

David A. Weaver

Social Security Administration

Andrew G. Biggs

American Enterprise Institute

Date Written: April 15, 2009

Abstract

Using the Social Security Administration's MINT (Modeling Income in the Near Term) model, this paper calculates the marginal returns to work near retirement, as measured by the increase in benefits associated with an additional year of employment at the end of an individual's work life. With exceptions for certain population subgroups, the analysis finds that marginal returns on Social Security taxes paid near retirement are generally low. The paper also tests the effects on marginal returns of a variety of potential Social Security policy changes designed to improve incentives to work.

Keywords: Social Security, return to work, MINT

JEL Classification: C5, H5

Suggested Citation

Reznik, Gayle and Weaver, David A. and Biggs, Andrew G., Social Security and Marginal Returns to Work Near Retirement (April 15, 2009). Social Security Issue Paper No. 2009-02. Available at SSRN: https://ssrn.com/abstract=1434508 or http://dx.doi.org/10.2139/ssrn.1434508

Gayle Reznik (Contact Author)

U.S. Social Security Administration ( email )

Washington, DC 20254
United States

David A. Weaver

Social Security Administration

500 E Street, SW
ITC Building, 9th Floor
Washington, DC 20254
United States

Andrew G. Biggs

American Enterprise Institute ( email )

1150 17th Street N.W.
Washington, DC 20036
United States
202-862-5841 (Phone)

HOME PAGE: http://www.aei.org

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