How effective is redistribution under the social security benefit formula?

This paper uses earnings histories from the Social Security Administration, linked to the survey responses for participants in the Health and Retireme nt Study, to investigate redistribution under the current social security b enefit formula. As advertised, own benefits are significantly redistributed from individuals with high to those with low lifetime earnings. However, r edistribution is roughly halved when spouse and survivor benefits are taken into account and redistribution is measured among families. When families are arrayed by total earnings during years when both spouses are engaged. i n substantial work, there is very little redistribution from families with high to low earnings capacity. (C) 2001 Elsevier Science B.V. All rights re served.