Policy Research

Would People Behave Differently If They Better Understood Social Security? Evidence from a Field Experiment

Jeffrey B. Liebman, Erzo F.P. Luttmer

Summary

This randomized experiment tests the effect of increased information to social security amongst older workers. One group was given essential information regarding the social security program, while a control group was not sent any information. The simple act of providing pamphlets and web-information increased the probability of working an additional year by 4 percentage-points, an effect driven mainly by women.

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Policy Implications

The provision of information is an incredibly cheap mechanism that may increase labor force participation amongst older workers, thus reducing strain on the social security trust fund.