Learning by doing: Active employer sponsored retirement savings plan participation and household wealth accumulation
AbstractThis paper investigates the impact of household exposure to employer pension plan features using the Health and Retirement Survey. We investigate whether exposure to active management (choice) or participation in plan-sponsored financial education seminars impacts household portfolio allocations and wealth. We consider interactions between pension design and investment patterns outside of workers’ pension plans, utilizing two parametric estimators: the random effects probit and the multivariate probit. We extend our results non-parametrically via propensity score matching. We find repeated evidence that both of the plan features improve asset allocations and financial outcomes for recent retirees, especially when used together.
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Bibliographic InfoArticle provided by Elsevier in its journal The Quarterly Review of Economics and Finance.
Volume (Year): 52 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/inca/620167
Financial education; Employer-based financial services; Household savings;
Find related papers by JEL classification:
- D1 - Microeconomics - - Household Behavior
- G2 - Financial Economics - - Financial Institutions and Services
- I2 - Health, Education, and Welfare - - Education
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