Marital Status and Intra-Generational Redistribution of Social Security
In this paper, we study the intra-generational redistribution of the U.S. social security system in a dynamic structural life cycle model of couples with uncertain marital status and survival risk. We focus particularly on auxiliary spousal and survivor benefits, where eligibility is directly linked to marital status and the death of the spouse. Redistribution is analyzed against the backdrop of the following stylized facts: (1) martial stability increases with the socio-economic status of households, and (2) the survival rate is strongly linked to income. We evaluate the impact of each element for the poverty rate of the elderly, and for female labor supply.