ALTERNATIVE SOCIAL SECURITY INDEXING SCHEMES AND POVERTY AMONG THE ELDERLY

An examination of the distributional implications of changing the inflation indexing system for Social Security benefits, using Retirement History Survey data for 1970-1976 to assess the distributional impact of 7 alternative ways of indexing Social Security benefits. It is concluded that the legislated indexing of Social Security benefits to the Consumer Price Index in 1973 has reduced poverty substantially relative to what it would have been without indexation. However, minor modifications in the indexing scheme, eg, the use of an alternative wage or price index, would not have a major distributive impact. 4 Tables, 5 References. AA.