Labor Supply Decisions of the Senior Population: Effect of Changes to the Social Security Earnings Test

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Abstract/Contents

Abstract: This paper evaluates the effect of the Senior Citizen’s Freedom to Work Act of 2000 on the labor supply of the senior population. The University of Michigan’s Panel Study of Income Dynamics (PSID) 1999 and 2003 waves are used to model and compare the retirement decisions of seniors before and after the passage of the law in 2000. Using analysis based on a life-cycle model of saving developed by Burtless and Moffit (1985), it is found that retirement probabilities fell for seniors aged 65-69 in the 2003 PSID versus the 1999 PSID in particular at ages 66 and 69, however the change in labor supply in terms of hours of work is more mixed. It is also found that female seniors, seniors with dependents, seniors with spouses still working, and nonwhites retire less frequently. Poor health and being married encourage retirement and fewer hours of work

Type of resource	text
Date created	May 2008

Author	Tamkin, Michael
Primary advisor	Boskin, Michael J.
Degree granting institution	Stanford University, Department of Economics

Subject	Stanford Department of Economics
Subject	senior labor supply
Subject	aging work force
Subject	earnings test
Subject	Senior Citizen’s Freedom to Work Act
Subject	work after retirement
Genre	Thesis

Location	https://purl.stanford.edu/xn174tc7309

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Preferred Citation: Tamkin, Michael. (2008). Labor Supply Decisions of the Senior Population: Effect of Changes to the Social Security Earnings Test. Stanford Digital Repository. Available at: https://purl.stanford.edu/xn174tc7309

Stanford University, Department of Economics, Honors Theses

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