Research Report Redistribution under OASDI
Subtitle
How Much and to Whom?
Lee Cohen, C. Eugene Steuerle, Adam Carasso
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In one of the most comprehensive, intergenerational studies on Social Security's redistribution of lifetime income, the authors find that (1) Social Security, or Old Age, Survivors, and Disability Insurance (OASDI), is slightly progressive in that persons with high lifetime earnings on average receive lower rates of return than persons with low lifetime earnings; (2) For most generations, the retirement component (OASI) by itself achieves little if any redistribution across income groups, while Disability Insurance (DI) is progressive, it is a relatively small program, and so does not affect overall redistribution under OASDI, except for key groups; and (3) The groups who benefit most when DI is "added" to OASI are men, workers in the bottom earnings quintile, high school dropouts, and minorities. [ Brookings Institution]
Research Areas Economic mobility and inequality Health and health care Aging and retirement Social safety net
Tags Social Security Poverty Disability and long-term care Income and wealth distribution Retirement policy