Gelber, Alexander M.; Jones, Damon; Sacks, Daniel W. - Census Bureau, Department of Commerce - 2013
We study frictions in adjusting earnings to changes in the Social Security Annual Earnings Test (AET) using a panel of Social Security Administration microdata on one percent of the U.S. population from 1961 to 2006. Individuals continue to "bunch" at the convex kink the AET creates even when...