Social Interactions in Labor Supply

Demographics, Social Security Reform, and Labor Supply

At this point, it is nearly impossible to escape discussion of the aging of the baby boom and its implications for Social Security. No set of reasonable demographic and economic assumptions yields a forecast of long-term solvency for the program as it exists today (Board of Trustees 1997; Congressional Budget Office (CBO) 1997). Some reform is necessary. The open questions are which reforms and...

Labor Supply Responses to Social Security

Economists’ most basic model for studying Social Security policy issues is the so—called life—cycle model of saving behavior. This paper sets up a life—cycle model in which a household simultaneously chooses its lifetime consumption profile and retirement age. The paper calibrates parameters from Consumer Expenditure Survey data, making special use of observations of changes in household consum...

Social Interactions in the Labor Market

Description: Social Interactions in the Labor Market addresses the following questions: How do theoretical economic models and their associated econometric representations change when there are social interactions among households? How do policy implications change as the result of estimated households' social interactions? The authors present a unified theoretical and empirical representation ...

Social Security Eligibility and the Labor Supply of Elderly Immigrants

Social Security , Institutional Settings , and Labor Supply 1

We analyze crosscountry panel data to examine the effect of changes in the social security systems on the labor supply of men over 50 years of age. Our findings indicate that the labor supply of older men rises with the social security eligibility age, increased pension rates for later retirement, and the defined contribution replacement rate. However their participation rate falls with increas...