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Jeffrey Liebman, Erzo Luttmer, and David Seif, 2009, 'Labor Supply Responses to Marginal Social Security Benefits: Evidence from Discontinuitites,' Journal of Public Economics 93(2009): 1208-1223.

 Abstract: A key question for Social Security reform is whether workers respond to the link on the margin between the Social Security taxes they pay and the Social Security benefits they will receive. We estimate the effects of the marginal Social Security benefits that accrue with additional earnings on three measures of labor supply: retirement age, hours, and labor earnings. We develop a new approach to identifying these incentive effects by exploiting five provisions in the Social Security benefit rules that generate discontinuities in marginal benefits or non-linearities in marginal benefits that converge to discontinuities as uncertainty about the future is resolved. We find that indi

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