Social Security and Household Wealth Accumulation: New Microeconomic Evidence
8 Pages Posted: 4 Jul 2004 Last revised: 27 Jul 2010
Date Written: May 1980
The social security program will pay benefits of more than $100 billion in 1978. Public transfers on this scale are large enough to have profound effects on the behavior of the U.S. economy. The most important effect, although not the only one, is likely to be the impact of social security on private saving and aggregate capital accumulation. The present paper contributes to the analysis of this issue by providing new evidence on the extent to which the accumulation of wealth by individual households responds to differences in social security benefits.
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