New paper: “The Employment Effects of the Social Security Earnings Test”

The Employment Effects of the Social Security Earnings Test

Alexander M. Gelber, Damon Jones, Daniel W. Sacks, Jae Song

NBER Working Paper No. 26696
Issued in January 2020
NBER Program(s):Program on the Economics of Aging, Labor Studies Program, Public Economics Program

We investigate the impact of the Social Security Annual Earnings Test (AET) on the employment decisions of older Americans. The AET reduces Social Security benefits by one dollar for every two dollars earned above the exempt amount. Using a differences-in-differences design, we find that the employment rate of those predicted to become subject to the AET decreases substantially relative to those not predicted to become subject to it. The point estimates suggest that the AET reduces the employment rate of Americans aged 63-64 by at least 1.2 percentage points.

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Savings and Retirement Forum February 4 with the CBO’s Nadia Karamcheva

Join us the afternoon of February 4

For a Lunch Meeting with Guest Speaker:

Nadia Karamcheva

Economist

Congressional Budget Office

Who will discuss her paper:

The Relationship Between
Household Debt and Retirement Timing

Noon-1:00 p.m.
Tuesday, February 4th, 2020

Click to RSVP

Location: Tax Foundation
1325 G St NW

(Lunch will be provided)

Nadia Karamcheva is an economist at the Congressional Budget Office (CBO) in Washington DC. Prior to joining CBO, she worked as a research associate at the Urban Institute. She has a Ph.D. in Economics from Boston College and a B.A. in Economics and Business Administration from the American University in Bulgaria.

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CBO’s Long-Term Social Security Projections: Changes Since 2018 and Comparisons With the Social Security Trustees’ Projections

In June 2019, CBO updated its long-term budget projections, including projections of the Social Security system’s finances. CBO compares those projections with its 2018 projections and with the Social Security trustees’ latest projections.

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