Social Security Dependent Benefits, Net Payroll Tax, and Married Women's Labor Supply

13 Pages Posted: 22 Feb 2018

See all articles by Hee-Seung Yang

Hee-Seung Yang

KDI School of Public Policy and Management

Date Written: April 2018

Abstract

This paper examines how Social Security dependent benefits impact the labor supply of married women aged 25–54. Specifically, I investigate whether the decrease in the rate of return to women's work discourages them from participating in the labor force by simulating expected net payroll tax rates and dependent benefits. Dependent benefits may reduce the net return to women's work, as they usually pay the full payroll tax without receiving marginal benefits for additional earnings if they claim benefits based on their husbands' earnings records. The results show that high net payroll tax rates reduce married women's work incentives, particularly those near retirement age.

JEL Classification: H24, H55, J22

Suggested Citation

Yang, Hee-Seung, Social Security Dependent Benefits, Net Payroll Tax, and Married Women's Labor Supply (April 2018). Contemporary Economic Policy, Vol. 36, Issue 2, pp. 381-393, 2018, Available at SSRN: https://ssrn.com/abstract=3127873 or http://dx.doi.org/10.1111/coep.12250

Hee-Seung Yang (Contact Author)

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
0
Abstract Views
119
PlumX Metrics