The Family Spillovers of Social Security: Evidence from Survivors Benefit Eligibility
Working paper
- Applied Regression Kink Design (RKD) using SIPP and ATUS microdata to examine how Social Security survivor benefit eligibility at age 60 reshapes resource transfers within families. Find that eligibility significantly increases intergenerational financial transfers from widowed parents(aged 55-65) to adult children, but leaves time-based caregiving transfers unchanged — suggesting income effects drive the reallocation. Downstream effects on children's labor supply are also identified: benefit eligibility reduces children's working hours. Heterogeneity analysis by parental health status reveals differential responses across health groups. Additionally, exploit the Medicare eligibility kink at age 65 to examine how the interaction between Social Security and Medicare jointly shapes these family spillovers.