Research and Analysis by Elizabeth T. Powers

The Effect of the SSI Program on Labor Supply: Improved Evidence from Social Security Administrative Files
from Social Security Bulletin, Vol. 65 No. 3 (released January 2005)
by David Neumark and Elizabeth T. Powers

We use public-use microdata linked to Social Security Administration records to reexamine the impact of the Supplemental Security Income program on work disincentives among older individuals nearing the age of eligibility for Supplemental Security Income for the aged and likely to use the program. The administrative records provide significant advantages relative to past research and yield strong evidence that the Supplemental Security Income program induces some individuals nearing the age of eligibility to reduce their labor supply.