How Effective is Redistribution Under the Social Security Benefit Formula?

TitleHow Effective is Redistribution Under the Social Security Benefit Formula?
Publication TypeJournal Article
Year of Publication2001
AuthorsGustman, AL, Steinmeier, TL
JournalJournal of Public Economics
Call Numberpubs_2000_Gustman_AJPuEc.pdf
KeywordsConsumption and Savings, Income, Retirement Planning and Satisfaction, Social Security

In this study, data from the Health and Retirement Study linked to the Social Security Administration is used in order to analyze wealth redistribution by way of Social Security. This redistribution seems to go from the upper earners to the lower earners. More specifically, the wealth is being redistributed from men to women and, when looking at the household context, from primary earners to secondary earners. The study also illustrates wealth redistribution when specific factors are taken into account and show how much of an effect different variables have on the redistribution of wealth. From their analysis the authors conclude that privatizing the Social Security system would have no effect on redistribution of wealth.


RDA 1996-005

Endnote Keywords

Personal Income and Wealth Distribution/Social Security and Public Pensions/Economics of the Elderly/Retirement/Retirement Policies/Social Security/Income Redistribution/Retirement

Endnote ID


Citation Key6757