IDEAS home Printed from https://ideas.repec.org/p/epa/cepawp/2014-10.html
   My bibliography  Save this paper

How 401(k) Plans Make Recessions Worse

Author

Listed:

Abstract

This study looks past the decline in housing values, the success of traditional automatic stabilizers and stimulus spending as explanations of the dynamics of the recession. Annuity based retirement accounts backed by government programs also helped the economy, while financially-based retirement programs like 401(k) type programs, hurt the economy.

Suggested Citation

  • Teresa Ghilarducci & Joelle Saad-Lessler, 2014. "How 401(k) Plans Make Recessions Worse," SCEPA working paper series. 2014-9, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    • Handle: RePEc:epa:cepawp:2014-10
    as

    Download full text from publisher

    File URL: https://www.economicpolicyresearch.org/images/docs/research/retirement_security/WP_2014-9_How_401k_Plans_Make_Recessions_Worse.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Villasenor, JoseA. & Arnold, Barry C., 1989. "Elliptical Lorenz curves," Journal of Econometrics, Elsevier, vol. 40(2), pages 327-338, February.
    2. Branko Milanovic, 2002. "True World Income Distribution, 1988 and 1993: First Calculation Based on Household Surveys Alone," Economic Journal, Royal Economic Society, vol. 112(476), pages 51-92, January.
    3. Angus Deaton, 2005. "Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 1-19, February.
    4. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, vol. 106(437), pages 1045-1055, July.
    5. Angus Deaton, 2005. "ERRATUM: Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 395-395, May.
    6. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," The World Bank Economic Review, World Bank, vol. 10(3), pages 565-591, September.
    7. Camelia Minoiu & Sanjay G. Reddy, 2009. "The Estimation of Poverty and Inequality through Parametric Estimation of Lorenz Curves: An Evaluation," Journal of Income Distribution, Ad libros publications inc., vol. 18(2), pages 160-178, June.
    8. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
    9. Shaohua Chen & Martin Ravallion, 2004. "How Have the World's Poorest Fared since the Early 1980s?," The World Bank Research Observer, World Bank, vol. 19(2), pages 141-169.
    10. Quah, Danny, 1996. "Twin peaks : growth and convergence in models of distribution dynamics," LSE Research Online Documents on Economics 2278, London School of Economics and Political Science, LSE Library.
    11. Frederick Solt, 2009. "Standardizing the World Income Inequality Database," Social Science Quarterly, Southwestern Social Science Association, vol. 90(2), pages 231-242, June.
    12. Datt, Gaurav, 1998. "Computational tools for poverty measurement and analysis," FCND discussion papers 50, International Food Policy Research Institute (IFPRI).
    13. Milanovic, Branko, 2012. "Global income inequality by the numbers : in history and now --an overview--," Policy Research Working Paper Series 6259, The World Bank.
    14. Maxim Pinkovskiy & Xavier Sala-i-Martin, 2009. "Parametric Estimations of the World Distribution of Income," NBER Working Papers 15433, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francisco G. Ferreira & Nora Lustig & Daniel Teles, 2015. "Appraising cross-national income inequality databases: An introduction," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(4), pages 497-526, December.
    2. Arjun Jayadev & Rahul Lahoti & Sanjay G. Reddy, 2015. "The Middle Muddle: Conceptualizing and Measuring the Global Middle Class," Working Papers 2015_06, University of Massachusetts Boston, Economics Department.
    3. Arief Anshory Yusuf & Andy Sumner, 2017. "Multidimensional poverty in Indonesia: How inclusive has economic growth been?," Departmental Working Papers 2017-09, The Australian National University, Arndt-Corden Department of Economics.
    4. Peter Edward & Andy Sumner, 2015. "New estimates of global poverty and inequality: How much difference do price data," Working Papers 365, ECINEQ, Society for the Study of Economic Inequality.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lahoti Rahul & Jayadev Arjun & Reddy Sanjay, 2016. "The Global Consumption and Income Project (GCIP): An Overview," Journal of Globalization and Development, De Gruyter, vol. 7(1), pages 61-108, June.
    2. Sanjay Reddy & Rahul Lahoti & Arjun Jayadev, 2015. "The global consumption and income project: An introduction and preliminary findings," WIDER Working Paper Series 003, World Institute for Development Economic Research (UNU-WIDER).
    3. Rahul Lahoti & Arjun Jayadev & Sanjay G. Reddy, 2015. "The global consumption and income project: An introduction and preliminary findings," WIDER Working Paper Series wp-2015-003, World Institute for Development Economic Research (UNU-WIDER).
    4. Rahul Lahoti & Arjun Jayadev & Sanjay G. Reddy, 2014. "The Global Consumption and Income Project (GCIP): An Introduction and Preliminary Findings," LIS Working papers 621, LIS Cross-National Data Center in Luxembourg.
    5. Calzadilla, Alvaro, 2010. "Global income distribution and poverty: Implications from the IPCC SRES scenarios," Kiel Working Papers 1664, Kiel Institute for the World Economy (IfW Kiel).
    6. Ms. Camelia Minoiu & Sanjay Reddy, 2008. "Kernel Density Estimation Based on Grouped Data: The Case of Poverty Assessment," IMF Working Papers 2008/183, International Monetary Fund.
    7. Ximing Wu & Andreas Savvides & Thanasis Stengos, 2008. "The Global Joint Distribution of Income and Health," Working Papers 0807, University of Guelph, Department of Economics and Finance.
    8. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    9. Peter Edward & Andy Sumner, 2015. "New estimates of global poverty and inequality: How much difference do price data," Working Papers 365, ECINEQ, Society for the Study of Economic Inequality.
    10. Xavier Sala-i-Martin, 2006. "The World Distribution of Income: Falling Poverty and … Convergence, Period," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 351-397.
    11. repec:rim:rimwps:25-08 is not listed on IDEAS
    12. Maxim Pinkovskiy & Xavier Sala-i-Martin, 2009. "Parametric Estimations of the World Distribution of Income," NBER Working Papers 15433, National Bureau of Economic Research, Inc.
    13. Paul Johnson & Chris Papageorgiou, 2020. "What Remains of Cross-Country Convergence?," Journal of Economic Literature, American Economic Association, vol. 58(1), pages 129-175, March.
    14. Dhongde, Shatakshee & Minoiu, Camelia, 2013. "Global Poverty Estimates: A Sensitivity Analysis," World Development, Elsevier, vol. 44(C), pages 1-13.
    15. Aparna P Lolayekar & Pranab Mukhopadhyay, 2020. "“Understanding growth convergence in India (1981–2010): Looking beyond the usual suspects”," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-17, June.
    16. Hajo Holzmann & Sebastian Vollmer & Julian Weisbrod, 2007. "Income Distribution Dynamics and Pro-Poor Growth in the World from 1970 to 2003," Ibero America Institute for Econ. Research (IAI) Discussion Papers 161, Ibero-America Institute for Economic Research.
    17. Bart Capéau & Andre Decoster, 2004. "The Rise or Fall of World Inequality: A Spurious Controversy?," WIDER Working Paper Series DP2004-02, World Institute for Development Economic Research (UNU-WIDER).
    18. Pinkovskiy, Maxim L., 2013. "World welfare is rising: Estimation using nonparametric bounds on welfare measures," Journal of Public Economics, Elsevier, vol. 97(C), pages 176-195.
    19. Fofack, Hippolyte, 2008. "Technology trap and poverty trap in Sub-Saharan Africa," Policy Research Working Paper Series 4582, The World Bank.
    20. Camelia Minoiu & Sanjay Reddy, 2014. "Kernel density estimation on grouped data: the case of poverty assessment," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 163-189, June.
    21. Ravallion, Martin, 2010. "The Developing World's Bulging (but Vulnerable) Middle Class," World Development, Elsevier, vol. 38(4), pages 445-454, April.

    More about this item

    Keywords

    Automatic stabilizers; Social Security; 401(k) plans;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:epa:cepawp:2014-10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bridget Fisher (email available below). General contact details of provider: https://edirc.repec.org/data/cenewus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.