Event

JVM Seminar: Johanna Wallenius (Stockholm School of Economics)

Jun 12, 2018, 05:00 pm - 06:30 pm, IHS, Josefstädter Straße 39, 1080 Vienna

It Sucks to Be Single! Marital Status and Redistribution of Social Security

Johanna Wallenius (Stockholm School of Ecnomics)

Abstract: In this paper, we study the labor supply effects and the redistributional consequences of the U.S. social security system. We focus particularly on auxiliary benefits, where eligibility is linked to marital status. To this end, we develop a dynamic, structural life cycle model of singles and couples, featuring uncertain marital status and survival. We account for the socio-economic gradients to both marriage stability and life expectancy. We find that auxiliary benefits have a large depressing effects on married women’s employment. Moreover, we show that a revenue neutral minimum benefit scheme would moderately reduce inequality relative to the current U.S. system.

joint with Max Groneck