Archive: Alicia H. Munnell
Policymakers and researchers have been fretting that the share of older Americans with debt has risen from 38 percent to 63 percent since 1990. Having debt, however, doesn’t have to be a bad thing. For example, households that take out a low-interest mortgage to buy a home, which typically appreciates, are likely making a savvy…
The rising cost of employer contributions to employee-sponsored health insurance (ESHI) can slow wage growth and erode the Social Security wage base. Both these effects were evident in the decades before 2005, as ESHI increased as a share of compensation. Fortunately, the ratio of ESHI contributions to compensation plateaued after 2005, stabilizing wages and halting…
