Journal article
TAXES AND THE LABOR SUPPLY OF OLDER AMERICANS: RECENT EVIDENCE FROM THE SOCIAL SECURITY EARNINGS TEST
National tax journal, Vol.67(2), pp.443-458
06/01/2014
DOI: 10.17310/ntj.2014.2.06
Abstract
This paper summarizes recent work on the impact of taxation on the labor supply of older individuals, with a focus on the Senior Citizens Freedom to Work Act of 2000, which abolished the Social Security earnings test for those ages 65 to 69. For men age 65 to 69, the repeal increased earnings by 8 to 20 percent and hours by 5 to 16 percent. For women claiming Social Security benefits on their own earnings history, the repeal increased earnings by 20 percent. Estimates of the compensated elasticity of earnings with respect to the net-of-tax share range from 0.05 to 0.12. Labor supply is very inelastic, even accounting for adjustment costs.
Details
- Title: Subtitle
- TAXES AND THE LABOR SUPPLY OF OLDER AMERICANS: RECENT EVIDENCE FROM THE SOCIAL SECURITY EARNINGS TEST
- Creators
- Gary V. Engelhardt - Syracuse UniversityAnil Kumar - Fed Reserve Bank Dallas, Res Dept, Dallas, TX USA
- Resource Type
- Journal article
- Publication Details
- National tax journal, Vol.67(2), pp.443-458
- Publisher
- Natl Tax Assoc
- DOI
- 10.17310/ntj.2014.2.06
- ISSN
- 0028-0283
- eISSN
- 1944-7477
- Number of pages
- 16
- Language
- English
- Date published
- 06/01/2014
- Academic Unit
- Economics
- Record Identifier
- 9984618645402771
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