The question of whether higher-lifetime income households save a larger fraction of their income was the subject of much debate in the 1950s and 1960s, and while not resolved, it remains central to the evaluation of tax and macroeconomic policies. We resolve this longstanding question using new empirical methods applied to the Panel Study of…

Examines the Social Security benefit inequities between male and female workers and between one- and two-earner families and traces the cause of such disparities. Discusses the evolution of today's Social Security System and presents two proposals for a possible reform of the system. (CT)