Labor Supply Adjustments to Policy: Evidence from the Social Security Earnings Te

描述（由申请人提供）：政府政策对劳动力供给影响的微观经济学研究通常将个人的劳动力供给与他们同时面临的政策制度联系起来。然而，在劳动力供给调整存在障碍的情况下，个人对政策的反应可能较慢，这意味着长期反应可能大于短期反应。在这个项目中，我们的目标是估计老年工人对政策的反应速度，即社会保障收入测试。相对于以前的研究，我们将在此背景下应用最近开发的经验方法。此外，我们将使用估计的调整模式来区分工人之间不完全调整的替代解释。初步结果表明，调整发生的延迟程度不同，从最多一年到最多两年不等。最终，该项目将通过确定适当的研究时间范围，并通过深入了解工人延迟反应的性质和原因，为未来对税收和社会保障政策的行为反应的研究提供信息。该项目将最直接地涉及面临社会保障收入测试的老年工人，但也将为公共财政领域提供一般性见解。

DESCRIPTION (provided by applicant): Microeconomic studies of the effect of government policy on labor supply typically relate individuals' labor supply to the policy regime that they fae contemporaneously. In the presence of barriers to adjustment of labor supply, however, individuals may respond to policy slowly, implying that long-run responses may be larger than short-run responses. In this project, we aim to estimate the speed with which elderly workers respond to policy, namely the Social Security Earnings Test. Relative to previous studies, we will apply more recently developed empirical methods in this context. Furthermore, we will use the pattern of adjustments estimated to distinguish between alternative explanations of incomplete adjustment among workers. Preliminary results suggest that adjustment happens with varying extent of delay, from at most one year to at most two years. Ultimately, the project will inform future research on the behavioral response to taxation and Social Security policy, by identifying the appropriate time horizon for studies, and also by providing insights into the natur and cause of delayed response among workers. The project will most directly pertain to elderly workers who face the Social Security Earnings test, but will also provide general insights for the field of public finance. PUBLIC HEALTH RELEVANCE: This research aims to quantify the amount of time it takes for individuals to respond to policy changes, with a specific focus on the Social Security Earnings Test. Furthermore, the nature and dynamics of adjustment will be used to help understand what causes a delay in response. Understanding these two concepts is crucial to designing optimal Social Security policy, which affects the labor supply and well-being of elderly workers.