| Popis: |
Abstract: In the past four decades, rising earnings inequality has substantially widened income disparities among working-age families. This chapter investigates the relationship between rising inequality during Americans’ prime working years and the simultaneous trend toward longer work lives. I find that both trends have increased inequality in the population past age 65. Higher earned income inequality before 65 pushes up inequality after 65, because high-wage workers accumulate greater wealth and more pension credits than workers who earn less. Moreover, the trend toward later retirement is more pervasive among high-wage than among low-wage workers, a pattern that tends to boost the relative incomes of the high-income elderly. Despite the factors driving up old-age inequality, income disparities in old age have increased notably less than disparities in the working-age U.S. population. This is primarily the result of much stronger government social protection for Americans past age 65 compared with the population under 65. |
