Age ([age.sub.t]) affects the benefit calculation in three ways: First, there is age of eligibility for OA benefits; second, an individual who claims OA benefits before reaching NRA (and after ERA) will receive reduced benefits for early claiming and an individual who delays claiming until after reaching NRA will have her/his benefits increased by actuarial adjustment factors; third, earnings tests for OA benefits are age specific.
Wage earnings ([wage.sub.t]) affect both AIME computation and the earnings test for OA benefits.
A frequent topic discussed in this literature is the effect of Social Security earnings tests on labor force participation.
Cordelia Reimers and Marjorie Honig found that men, but not women, are highly responsive to the earnings test; their model indicates that older women's labor force participation is increased by the delayed retirement credit, but not reduced by the earnings test.
The Senior Citizens' Freedom to Work Act (SCFWA) of 2000 repealed the Social Security earnings tests
for individuals between normal retirement age (NRA, which currently ranges from age 65 to 67 depending on year of birth) and age 70.
The multiple regression framework also shows how democracies and nondemocracies are quite similar in terms of their use of retirement tests, earnings tests, or in their splitting of the payroll tax between employer and employee.
Even though economists disapprove of SS benefit formulas that give the elderly so little incentive to work, this feature of public pension system is very common (even the United States had a significant earnings test, until the recent law change).
These older workers can now continue to work beyond their NRA and receive their full SSA retirement benefits, without suffering the prior "take-back" effects flowing from the repealed earnings tests for eligibility.
By age seventy, however, the earnings test would lapse; and they would thereafter receive their full SSA retirement benefits, regardless of how much they earned.
His domestic agenda, as he outlined it before the ASAE audience, is to promote choice and opportunity through * education and educational flexibility, * home ownership for low-income people, * business enterprise zones, * anti-discrimination laws, * community opportunity areas, * social security earnings tests
, and * anti-crime efforts.
The earnings tests
are made on the basis of absolute numbers, regardless of whether either or both are positive (profits) or negative (losses).
The complication that arises in applying the earnings tests
discussed above is that, in many cases, both spouses in a marriage have their own independent earnings records upon which Social Security benefits can be based.