The effect of means-tested income support for the elderly on pre-retirement saving: Evidence from the SSI program in the U.S.

David Neumark, Elizabeth Powers

Research output: Contribution to journalArticlepeer-review

Abstract

We attempt to draw inferences about behavioral responses to means-tested income support for the elderly by examining the effects on saving of the Supplemental Security Income (SSI) program for the aged in the U.S. Part of this program provides payments to the poor elderly, operating as a means-tested public retirement program. We exploit state-level variation in SSI benefits to estimate the effects of SSI on saving, using data from the 1984 Survey of Income Program Participation. We find evidence that high SSI benefits reduce saving among households with heads who are approaching the SSI eligibility age and are likely participants in the program.

Original languageEnglish (US)
Pages (from-to)181-206
Number of pages26
JournalJournal of Public Economics
Volume68
Issue number2
DOIs
StatePublished - May 1 1998

Keywords

  • Aged
  • H5
  • I38
  • Income support
  • J14
  • Means-tested

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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