Recent growth in wage inequality has important implications for Social Security solvency and the distribution of benefits. Because only earnings below the taxable maximum are subject to Social Security payroll taxes, wage growth that is concentrated among very high earners will generate lower...

Cross-sectional earnings inequality has risen sharply since the late 1970s in the United States. It remains an open question how this development has affected the insurance and income redistribution roles played by Social Security. The paper's first question is: How have the government...

Recent growth in wage inequality has important implications for Social Security solvency and the distribution of benefits. Because only earnings below the taxable maximum are subject to Social Security payroll taxes, wage growth that is concentrated among very high earners will generate lower...