Welfare for the elderly: the effects of SSI on pre-retirement labor supply

This paper studies pre-eligibility-age labor market disincentives created b y the Supplemental Security Income (SSI) program. Asset and income limits m ight induce individuals nearing the eligibility age to work less. We exploi t states' supplementation of federal. SSI benefits to estimate the effects of SSI on pre-retirement labor supply, using SIPP data. We find some eviden ce that generous SSI benefits reduce the pre-retirement labor supply land e arnings) of men who are likely to participate in SSI after retirement, as t hey near the eligibility age, especially men who are eligible for early Soc ial Security benefits, which may be used to offset their reduced labor inco me. (C) 2000 Elsevier Science S.A. All rights reserved.