Communicating Social Security Reform
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Communicating Social Security Reform. / Caplin, Andrew; Lee, Eungik; Leth-Petersen, Søren; Sæverud, Johan.
30645. ed. 2022.Research output: Working paper › Research
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TY - UNPB
T1 - Communicating Social Security Reform
AU - Caplin, Andrew
AU - Lee, Eungik
AU - Leth-Petersen, Søren
AU - Sæverud, Johan
PY - 2022
Y1 - 2022
N2 - Despite its centrality in monetary policy, communication is not a focus in social security reform. We investigate the potential for active communication to dissipate apparently widespread public confusion about the future of social security. We implement a simple information treatment in which we randomly provide survey respondents access to the longevity-based eligibility age implemented by reform that Denmark launched in 2006. Absent treatment, younger workers not only have biased beliefs, expecting to become eligible for social security earlier than policy makers intend, but also are highly uncertain about eligibility age. The information treatment eliminates the bias, suggesting it results from misunderstanding. Yet it has no influence on uncertainty, suggesting this is driven by unavoidable demographic and political uncertainties. Our results highlight the value of communication strategies and belief measurement as policy instruments outside the monetary policy arena.
AB - Despite its centrality in monetary policy, communication is not a focus in social security reform. We investigate the potential for active communication to dissipate apparently widespread public confusion about the future of social security. We implement a simple information treatment in which we randomly provide survey respondents access to the longevity-based eligibility age implemented by reform that Denmark launched in 2006. Absent treatment, younger workers not only have biased beliefs, expecting to become eligible for social security earlier than policy makers intend, but also are highly uncertain about eligibility age. The information treatment eliminates the bias, suggesting it results from misunderstanding. Yet it has no influence on uncertainty, suggesting this is driven by unavoidable demographic and political uncertainties. Our results highlight the value of communication strategies and belief measurement as policy instruments outside the monetary policy arena.
U2 - 10.3386/w30645
DO - 10.3386/w30645
M3 - Working paper
T3 - National Bureau of Economic Research. Working Paper Series
BT - Communicating Social Security Reform
ER -
ID: 345016569