Tag: insurance value
The insurance enhances Social Security’s role of offsetting Black/White inequality. My colleagues have just completed a really interesting study pertaining to the progressivity of Social Security. The usual story focuses on money’s worth, highlighting the offsetting effect of two factors. On the one hand, Social Security helps Black individuals and those with less education –…
The brief’s key findings are: The value of Social Security’s retirement program to individuals is often measured by comparing expected benefits to payroll taxes. But this approach ignores the program’s insurance value, which is larger for those with more uncertain lifespans. The analysis estimates the insurance value using a lifecycle model for stylized households by race, education,…