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How Job Displacement Affects Social Security Claiming and Work at Older Ages in the Short and Long Term

August 11, 2014 10:00 AM

An often-voiced concern in recessions is that unemployed older workers claim Social Security earlier than they would have in the absence of job loss, leading to lower Social Security benefits and hastening permanent withdrawal from the labor force. A separate question receiving less attention is whether workers rely on employment at older ages to make up losses in earnings from displacement. In How Job Displacement Affects Social Security Claiming and Work at Older Ages in the Short and Long Term, authors Till von Wachter, Jae Song, and Joyce Manchester present new estimates of how job displacement affects the age of claiming Social Security benefits for workers displaced close to retirement age and workers displaced in prime working age.

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