TY  - RPRT
        AU  - Lavecchia, Adam M.
AU  - Stutely, James
        TI  - Earnings Responses to Social Security Contributions: Evidence from Older Workers in Canada
        PY  - 2025/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18106
        UR  - https://www.iza.org/index.php/publications/dp18106
        AB  - This paper documents sharp bunching in third-party reported employment earnings at a basic exemption for social security contributions among older workers. Beginning in 2012, workers age 60-64 who were receiving a public pension were required to make social security contributions equal to 9.9 percent of their employment earnings above a basic exemption threshold of $3,500. Using administrative data on third-party reported earnings and a differences-in- bunching estimator we document sharp bunching at the $3,500 threshold. We argue that our results represent new evidence on the role of firms in mediating the earnings response to payroll taxes.
        KW  - sharp bunching
KW  - social security contributions
KW  - employment earnings
        ER  -