It Sucks to Be Single! Marital Status and Redistribution of Social Security

Max Groneck, Johanna Wallenius*

*Bijbehorende auteur voor dit werk

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In this paper, we study the labour supply effects and the redistributional consequences of the U.S. social security system. We focus particularly on auxiliary benefits, where eligibility is linked to marital status. To this end, we develop a dynamic, structural life cycle model of singles and couples, featuring uncertain marital status and survival. We account for the socio-economic gradients to both marriage stability and life expectancy. We find that auxiliary benefits have a large depressing effect on married women’s employment. Moreover, we show that a revenue neutral minimum benefit scheme would moderately reduce inequality relative to the current U.S. system.

Originele taal-2English
Pagina's (van-tot)327-371
Aantal pagina's45
TijdschriftEconomic Journal
Volume131
Nummer van het tijdschrift633
Vroegere onlinedatum17-jun-2020
DOI's
StatusPublished - jan-2021
Extern gepubliceerdJa

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