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Key Findings Details

Early Retirement, Labor Supply, and Benefit Withholding: The Role of the Social Security Earnings Test
Hugo A. Benítez-Silva and Frank Heiland
WP 2008-183

  • Removing the earnings tax on Social Security benefits would have large consequences on labor supply and earnings. Eliminating the earnings tax would not have a large enough effect on labor supply and earnings to meaningfully impact solvency.
  • Increasing the EEA would mechanically delay claiming benefits and likely increase labor supply in the years leading to the new EEA, but would have a limited effect on long run solvency.