Retirement Plan Participation in the United States: Do Public Sector Employees Save More?
AbstractThis study examines retirement plan participation and savings behavior for American public and private sector employees using the Panel Study of Income Dynamics (PSID) data set. This paper also examines the determinants of preference for a diversified portfolio within the retirement plans. The findings of this study indicate that the population’s plan participation increases with age, income, and education level. The public sector employees are more likely than others to participate in defined benefits plans. Conversely, they are less likely to participate in the defined contribution plans. Also, the public sector employees who participate in defined contribution plans hold lower amounts within their retirement accounts. The public sector employees are more likely to diversify their retirement portfolios or allocate them in bonds or annuities and are less likely to hold all or most of their wealth in stocks. Preference for diversification also increases with age, income and educational attainment.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 13546.
Date of creation: Feb 2009
Date of revision:
Publication status: Published in European Journal of Social Sciences 4.7(2009): pp. 30-40
Retirement saving; IRA; Plan Participation; Asset Allocation;
Find related papers by JEL classification:
- J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
This paper has been announced in the following NEP Reports:
- NEP-AGE-2009-11-27 (Economics of Ageing)
- NEP-ALL-2009-11-27 (All new papers)
- NEP-LAB-2009-11-27 (Labour Economics)
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