THE IMPACT OF SOCIAL SECURITY REFORM ON LOW-INCOME AND OLDER WOMEN

Abstract

This study uses a dynamic microsimulation model, DYNASIM3, to compare how proposed reforms to the Social Security system might affect American women's economic well-being. Although Social Security is vitally important for women, many older women live in poverty. In addition, there is concern that the program provides smaller benefits to some women who contributed to the system than to others who never worked or worked little. We examine eight reform proposals that would increase Social Security benefits and three packages of reforms that combine benefit increases for some women with reductions for others. The proposals' distributional implications differ significantly.