Social Security Reform with Heterogeneous Mortality

B-Tier
Journal: Review of Economic Dynamics
Year: 2023
Volume: 48
Pages: 320-344

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using a heterogeneous agent, life-cycle model of Social Security claiming, labor supply and saving, we consider the implications of lifespan inequality for Social Security reform. Quantitative experiments show that welfare is maximized when baseline benefits are independent of lifetime earnings, the payroll tax cap is 50% larger than its current level, and claiming adjustments are reduced. The Social Security system that would maximize welfare in a "2050 demographics" scenario, characterized by longer lifespans and an increased education-mortality gradient, is similar to the one that would maximize welfare today. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:21-214
Journal Field
Macro
Author Count
2
Added to Database
2026-01-25