Assume a social security system in a country provides income for people over the age of 65.

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Assume a social security system in a country provides income for people over the age of 65. If a recipient decides to work and earn some income, the amount he or she receives in social security benefits is typically reduced.

a. How does the provision of this grant affect people’s incentive to save while working?

b. How does the reduction in benefits associated with higher earnings affect people’s incentive to work past the age of 65?

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Economics

ISBN: 9781408093795

3rd Edition

Authors: Mark P. Taylor, N. Gregory Mankiw

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Question Posted: Nov 04, 2024 07:00 AM

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Assume a social security system in a country provides income for people over the age of 65.

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Economics

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