Household Labor Supply and the Value of Social Security Survivors Benefits

By:

Coyne, David

Contributor(s):

Material type:

Continuing resourcePublication details: American Economic Review; 2024Description: 1248-1280ISSN:

0002-8282

Subject(s):

Actuarial Studies, Household Finance: Household Saving, Borrowing, Debt, and Wealth, Social Security and Public Pensions, Economics of Gender
Consumer Economics: Empirical Analysis, Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making, Insurance
Non-labor Discrimination, Time Allocation and Labor Supply
Insurance Companies

Online resources:

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Summary: We combine quasi-experimental variation in spousal death and age eligibility for survivors benefits using US tax records to study the effects on American households' labor supply and the design of social security's survivors insurance. Benefit eligibility at the exact age of 60 induces sharp reductions in the labor supply of newly widowed households, highlighting the value of survivors benefits and the liquidity they provide following the shock. Among eligible widows, the spousal death event induces no increases in labor supply, suggesting little residual need to self-insure. Using theory, we underscore the program's protective insurance role and its high valuation among survivors.

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Holdings
Item type	Current library	Call number	Vol info	Status	Date due	Barcode
Article Index	Dr VKRV Rao Library		Vol. 114, No. 5	Not for loan		AI140

We combine quasi-experimental variation in spousal death and age eligibility for survivors benefits using US tax records to study the effects on American households' labor supply and the design of social security's survivors insurance. Benefit eligibility at the exact age of 60 induces sharp reductions in the labor supply of newly widowed households, highlighting the value of survivors benefits and the liquidity they provide following the shock. Among eligible widows, the spousal death event induces no increases in labor supply, suggesting little residual need to self-insure. Using theory, we underscore the program's protective insurance role and its high valuation among survivors.

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