Discrimination and Economic Mobility

Reviews current research on primarily racial discrimination to assess the extent to which it persists and contributes to relative immobility for minorities, especially African Americans. Discusses methods of measuring discrimination and their limitations

The Implications of Career Lengths for Social Security

While growing fiscal pressures and increasing life expectancy have prompted calls to raiseretirement ages so that lifetime benefits would be concentrated in older ages, some fear that this change -- without other adjustments -- might harm long-career, lower-wage workers. Tying retirement benefit eligibility to years of service might protect lower-wage workers if they tend to start their careers relatively early and work more years prior to retirement than higher-wage workers. But higher disability rates and greater employment volatility could offset lower-wage workers' early labor force starts, and lead to fewer total years of service completed. Using survey data matched to administrative earnings records, we describe variation in work histories for current and near retirees by gender, education, and other important characteristics. We find that years of service are not likely to provide an effective way to protect the lowest-wage workers. Among other reasons, men and women with the least education also work the least

How Would the President's Fiscal Commission's Social Security Proposals Affect Future Beneficiaries?

Estimates how proposed changes to Social Security, including raising the cap on earnings subject to the payroll tax, would affect benefits over time and by income and lifetime payroll tax contributions

Are There Opportunities to Increase Social Security Progressivity Despite Underfunding?

Reviews the payroll tax, Social Security's benefit formula, and outcomes by race, gender, and earnings level, and explores why low-income and minority groups do not receive greater returns on contributions. Simulates the effects of progressive reforms

Boomers' Retirement Income Prospects

Examines how changing demographics and patterns in lifetime earnings, pension participation, and wealth accumulation among Americans born between 1946 and 1964 will shape baby boomers' economic well-being at age 70

Rising Tides and Retirement: The Aggregate and Distributional Effects of Differential Wage Growth on Social Security

Recent growth in wage inequality has important implications for Social Security solvency and the distribution of benefits. Because only earnings below the taxable maximum are subject to Social Security payroll taxes, wage growth that is concentrated among very high earners will generate lower tax receipts than wage growth that is more evenly distributed. The progressivity of the Social Security benefit formula increases benefit payouts when the share of workers with low wages grows. This study uses a dynamic microsimulation model to examine the aggregate and distributional consequences of alternative scenarios about the distribution of future wage growth among workers. We find fairly marked changes in projected Social Security benefit distributions, poverty, and long-term financing status with relatively modest changes in assumptions about wage differentials.