Lifetime distributional effects of Social Security retirement benefits

This article presents three measures of the distribution of actual and projected net benefits (benefits minus payroll taxes) from Social Security's Old-Age and Survivors Insurance (OASI) for people born between 1931 and 1960. The results are based on simulations with the Social Security Administration's Model of Income in the Near Term (MINT), which projects retirement income through 2020. The base sample for MINT is the U.S. Census Bureau's Survey of Income and Program Participation panels for 1990 to 1993, matched with Social Security administrative records. The study population is grouped into 5-year birth cohorts and then ranked by economic status in three ways. First, the population is divided into five groups on the basis of individual lifetime covered earnings, and their lifetime present values of OASI benefits received and payroll taxes paid are calculated. By this measure, OASI provides much higher benefits to the lowest quintile of earners than to other groups, but it becomes less redistributive toward lower earners in more recent birth cohorts. Second, people are ranked by shared lifetime covered earnings, and the values of shared benefits received and payroll taxes paid are computed. Individuals are assumed to split covered earnings, benefits, and payroll taxes with their spouses in the years they are married. By the shared covered earnings measure, OASI is still much more favorable to persons in the lower income quintiles, although to a lesser degree than when people are ranked by individual covered earnings. OASI becomes more progressive among recent cohorts, even as net lifetime benefits decline for the entire population. Finally, individuals are ranked on the basis of their shared permanent income from age 62, when they become eligible for early retirement benefits, until death. Their annual Social Security benefits are compared with the benefits they would have received if they had saved their payroll taxes in individual accounts and used the proceeds to buy either of two annuities that provide level payments from age 62 until death: a unisex annuity that is based on the average life expectancy of the birth cohort or an age-adjusted annuity that is based on the worker's own life expectancy. On the permanent income measure, OASI is generally more favorable to people in higher income quintiles. Moreover, it is particularly unfavorable to those in the lowest quintile. Because people in the lowest quintile have a shorter life expectancy, they receive OASI benefits for a shorter period. This group would receive greater benefits in retirement if they invested their payroll taxes in the age-adjusted annuity. OASI is more favorable to them than the unisex annuity, however, OASI is becoming more progressive in that the net benefits it provides drop more rapidly among higher income quintiles than lower ones. This article also examines how OASI affects individuals by educational attainment, race, and sex. On both the lifetime covered earnings and the permanent income measures, OASI is more favorable to workers with less education and more favorable to women. The results by race and ethnicity are mixed. When people are ranked by the present value of their shared lifetime covered earnings, OASI appears more favorable to non-Hispanic blacks and Hispanics than to non-Hispanic whites. When people are ranked by shared permanent income in retirement, however, OASI produces negative returns for both non-Hispanic blacks and non-Hispanic whites in the most recent birth cohorts, with non-Hispanic blacks faring relatively worse. The changes across cohorts occur partly because of changes in tax rates and benefits, but more importantly because of changing demographics and earnings patterns of the workforce. Of particular importance is the increasing share of beneficiaries who receive worker benefits instead of auxiliary benefits as wives or widows. OASI benefits are based on the lifetime covered earnings of current or former married couples, as well as on earned retirement benefits of individuals. The reduced importance of auxiliary benefits (due to the higher lifetime covered earnings of women) and the increased proportion of divorced retirees make OASI more progressive--even as net benefits decline--for current and future cohorts than for cohorts who retired in the 1990s. Analysis of these findings suggests that simulations of policy changes in Social Security must take into account the decreasing importance of auxiliary benefits across birth cohorts and the complex changes in individuals' marital histories.     

The poor in Singapore: issues and options

This article examines the changing patterns of poverty in Singapore. As Singapore's population ages, the poor increasingly includes the elderly. It appears that ascribed factors, such as gender and race, have significant influence on financial security at old age. As the population ages, the adequacy of existing anti-poverty policy is challenged.     

Entrepreneurship, Secrecy, and Productivity: A Comparison of Clinical and Non-Clinical Life Sciences Faculty

This paper addresses research in the life sciences, responsible for significant national expenditures for scientific investigations funded by both the federal government and industry. Our investigation examines faculty members' involvement with industry in entrepreneurial ways that is, involved in translating their research into potentially marketable knowledge or products. First, this study examines whether there are differences in entrepreneurial behaviour between clinical and non-clinical faculty in the life sciences with industry relationships, and, second, to discover any linkage between entrepreneurship and secrecy or productivity in different ways for clinical and non-clinical faculty. The study is based on survey responses of a national sample of 4,000 clinical and non-clinical life sciences faculty in 49 U.S. research universities. The results show non-clinical faculty as more involved at the back end. The more entrepreneurial end of commercialization while clinical faculty are involved at the back end. The more entrepreneurial faculty (non-clinical) are more likely to be secretive about their research. Clinical faculty are less likely to have been denied access to research results or products. Entrepreneurial faculty are not less productive in their faculty roles. This investigation is preliminary in that it addresses one large area of academic research but excludes fields with longer historical relationships with industry.     

Mixed-Sex Settings and the Perception of Competence

This study examines the association of self-perceptions with sixth to eighth graders' exposure to mixed-sex and dating contexts. It contrasts two hypotheses: the stress hypothesis, which suggests that the transition to romantic relationships will be associated with declines in self-esteem, especially for girls, and the leisure hypothesis, which suggests that movement into a desired role in an emotionally positive social context will be associated with positive emotions and higher self-esteem. Results indicate that adolescents experience mixed-sex settings positively, and that comfort with the other sex (for girls) and more time spent with the other sex (for boys) are predictive of more positive self-perceptions. Activity diary data suggest that these differences are due to differences in the emotional climate of same- and mixed-sex settings, rather than to the activities adolescents engage in with same- and mixed-sex groups. Dating boys who are less interested in dating experience lower self-esteem. Results are discussed in light of the transitional nature of mixed-sex relationships in early adolescence and the preparatory role played by same-sex friendships.     

A validation study for the extraction and analysis of DNA from human nail material and its application to forensic casework.

A validation study was conducted to demonstrate that deoxyribonucleic acid (DNA) could be successfully extracted from human nail material and analyzed using short tandem repeat (STR) profiling and/or mitochondrial DNA (mtDNA) sequencing. This study involved the development of a DNA extraction protocol that includes a cleaning procedure designed to remove external contaminants (e.g., biological, chemical). This protocol was used to test human nail material that had been soaked in whole blood from a second donor and coated with gold-palladium to simulate scanning electron microscopic analysis. The results showed no indication of a mixture and were consistent with that of the nail donor. Fresh human nail material usually yielded both STR profiles and mtDNA sequence information; however, aged human nail material (approximately eight years old) yielded only mtDNA sequence information. Upon completion of the validation study, the extraction protocol was used for the analysis of a torn fingernail fragment recovered from the scene of a violent homicide in 1983. A partial STR profile and mtDNA sequence information indicated that the fingernail fragment was excluded as originating from the suspect and was, in fact, consistent with originating from one of the victims.