TY - RPRT T1 - How Does Local Cost-of-Living Affect Retirement for Low and Moderate Earners? Y1 - 2022 A1 - Quinby, Laura D. A1 - Gal Wettstein KW - cost-of-living KW - Low income KW - moderate income KW - Retirement AB - This paper uses the Health and Retirement Study to explore how local cost-of-living affects Social Security replacement rates and household behavior. In theory, labor markets with high cost-of-living also offer more compensation. If this compensating differential is paid in wages, rather than benefits, it reduces the share of earnings replaced by Social Security due to the progressive benefit structure. This paper examines how important the cost-of-living penalty is, in practice, and whether it impacts households’ saving or labor supply. JF - Working Papers PB - Center for Retirement Research at Boston College UR - https://crr.bc.edu/working-papers/how-does-local-cost-of-living-affect-retirement-for-low-and-moderate-earners/ ER -