RT Journal Article
SR Electronic
T1 The Employment Effects of the Social Security Earnings Test
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 341
OP 371
DO 10.3368/jhr.57.2.1018-9830R2
VO 57
IS 2
A1 Gelber, Alexander
A1 Jones, Damon
A1 Sacks, Daniel W.
A1 Song, Jae
YR 2022
UL http://jhr.uwpress.org/content/57/2/341.abstract
AB 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.