The implications of career lengths for Social Security

The

implications of career lengths for Social Security

Favreault

Melissa M.

Favreault, Melissa M.

Author

Steuerle

C. Eugene

Steuerle, C. Eugene

Author

text

working paper

Chestnut Hill, Mass. Center for Retirement Research at Boston College20082008monographic

Chestnut Hill, Mass.

Center for Retirement Research at Boston College

2008

monographic

Englisheng

English

eng

electronicapplication/pdfborn digital

electronic

application/pdf

born digital

While growing fiscal pressures and increasing life expectancy have prompted calls to raise retirement ages so that lifetime benefits would be concentrated in older ages, some fear that this changewithout other adjustmentsmight 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.

Melissa M. Favreault and C. Eugene Steuerle.

CRR WP2008-5

CRR WP

2008-5

http://crr.bc.edu/images/stories/Working_Papers/wp_2008-5.pdf

MChBEnglisheng

MChB

Englisheng

English

eng