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Title: Macroeconomic Effects of Social Security Totalization Agreements

Citation Type: Miscellaneous

Publication Year: 2019

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Abstract: The United States has signed international social security totalization agreements with30 countries. For persons working in a foreign country during part of their careers, theseagreements reduce double taxation on social security burdens and reduce the risk of notqualifying for social security benefits. In this report, we consider the potential of internationalsocial security totalization agreements to affect macroeconomic outcomes. We find that theseagreements are associated with higher levels of foreign direct investment. The theoreticalframework indicates that these treaties can affect firms’ decisions to relocate their activitiesacross borders, but the magnitude and direction of this effect depends on the characteristics ofthe countries involved. The effects of these agreements are larger when the share of foreigncontrolled production is smaller in the host country.

Url: https://dornsife.usc.edu/assets/sites/1283/docs/UM19-Q1wpMRDRC_Prados.pdf

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Authors: Prados, María, J; Meijer, Erik; Pérez-Arce, Francisco

Publisher: University of Southern California

Data Collections: IPUMS CPS

Topics: Other

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