Distributive Effects of Social Security and Pension Benefits
As the public debates the danger of the increasing federal deficit, social security is once again receiving public attention. Should the government de-emphasize social security and emphasize employer-provided pensions as a vehicle for providing retirement income? Before policymakers face this question, it is important to evaluate the role of these programs in shaping the level and the distribution of income among the retired. This article presents findings from a study based on the 1982 New Beneficiary Survey. The study found that, compared with employer-provided pension benefits, social security benefits not only assure a relatively higher level of income to economically disadvantaged demographic groups of recent retirees but also are significantly more effective in equalizing income distribution among a recent cohort of retirees. Policy implications are drawn from the study's findings.
Black women: Truly disadvantaged in the transition from employment to retirement income
Abstract We combine labor market and class theory to explain how racial and gender income inequality endures in the transition from employment to retirement. Using data from Health and Retirement Study primary respondents who were not retired in 1992 (wave 1) but were retired in 2000 (wave 5), OLS regression and Heckman’s two step analysis indicate that: (1) black and white women earn less from employment, even after controlling for employment and marital status, educational credentials, and work experience; (2) black and white women are less likely to retire, even after controlling for employment, age, insurance, assets, and spousal employment/retirement status; and (3) after controlling for these gender differences in employment earnings and in retirement decisions, white women actually receive more total (Social Security, pension, and asset) income in retirement than comparable white men. Black men continue to exhibit no significant (net effect) differences (compared to white men), while black women continue to earn the least.
The Use of Qualitative Information in Macro-Economic Policy Analysis
The majority of macro-economic policy models takes for granted that conflicts among objectives can be assessed by means of a tradeoff analysis. Such tradeoffs imply that sacrifices and benefits of various impacts of decisions can be measured on a cardinal scale, so that a conventional macro-economic utility or welfare analysis can be applied.