Learning by doing: Active employer sponsored retirement savings plan participation and household wealth accumulation
This 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.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 52 (2012)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/inca/620167|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Benjamin, Daniel J., 2003. "Does 401(k) eligibility increase saving?: Evidence from propensity score subclassification," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1259-1290, May.
- Julie R. Agnew & Lisa R. Anderson & Jeffrey R. Gerlach & Lisa R. Szykman, 2008. "Who Chooses Annuities? An Experimental Investigation of the Role of Gender, Framing, and Defaults," American Economic Review, American Economic Association, vol. 98(2), pages 418-22, May.
- Brigitte C. Madrian & Dennis F. Shea, 2001.
"The Power of Suggestion: Inertia in 401(k) Participation and Savings Behavior,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 116(4), pages 1149-1187.
- Brigitte C. Madrian & Dennis F. Shea, 2000. "The Power of Suggestion: Inertia in 401(k) Participation and Savings Behavior," NBER Working Papers 7682, National Bureau of Economic Research, Inc.
- Richard H. Thaler & Shlomo Benartzi, 2001. "Naive Diversification Strategies in Defined Contribution Saving Plans," American Economic Review, American Economic Association, vol. 91(1), pages 79-98, March.
- Amos Tversky & Daniel Kahneman, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Levine's Working Paper Archive
7656, David K. Levine.
- Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March.
- Bergstresser, Daniel & Poterba, James, 2004.
"Asset allocation and asset location: household evidence from the survey of consumer finances,"
Journal of Public Economics,
Elsevier, vol. 88(9-10), pages 1893-1915, August.
- Daniel Bergstresser & James Poterba, 2002. "Asset Allocation and Asset Location: Household Evidence from the Survey of Consumer Finances," NBER Working Papers 9268, National Bureau of Economic Research, Inc.
- James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
- John Karl Scholz & Ananth Seshadri & Surachai Khitatrakun, 2004.
"Are Americans Saving "Optimally" for Retirement?,"
NBER Working Papers
10260, National Bureau of Economic Research, Inc.
- Bernheim, B. Douglas & Garrett, Daniel M., 2003. "The effects of financial education in the workplace: evidence from a survey of households," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1487-1519, August.
- Lorenzo Cappellari & Stephen P. Jenkins, 2003.
"Multivariate probit regression using simulated maximum likelihood,"
StataCorp LP, vol. 3(3), pages 278-294, September.
- Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," United Kingdom Stata Users' Group Meetings 2003 10, Stata Users Group.
- Jonathan A. Parker, 2000.
"Spendthrift in America? On Two Decades of Decline in the U.S. Saving Rate,"
in: NBER Macroeconomics Annual 1999, Volume 14, pages 317-387
National Bureau of Economic Research, Inc.
- Jonathan A. Parker, 1999. "Spendthrift in America? On Two Decades of Decline in the U.S. Saving Rate," NBER Working Papers 7238, National Bureau of Economic Research, Inc.
- Joao F. Cocco, 2005. "Portfolio Choice in the Presence of Housing," Review of Financial Studies, Society for Financial Studies, vol. 18(2), pages 535-567.
- Papke, Leslie E., 2004. "Individual financial decisions in retirement saving plans: the role of participant-direction," Journal of Public Economics, Elsevier, vol. 88(1-2), pages 39-61, January.
- Weisbenner, Scott, 2002. "Do pension plans with participant investment choice teach households to hold more equity?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 1(03), pages 223-248, November.
- James M. Poterba & Steven F. Venti & David A. Wise, 1999.
"Implications of Rising Personal Retirement Saving,"
NBER Working Papers
6295, National Bureau of Economic Research, Inc.
- Haliassos, Michael & Bertaut, Carol C, 1995. "Why Do So Few Hold Stocks?," Economic Journal, Royal Economic Society, vol. 105(432), pages 1110-29, September.
- Sherrie L. W. Rhine & William H. Greene & Maude Toussaint-Comeau, 2006.
"The Importance of Check-Cashing Businesses to the Unbanked: Racial/Ethnic Differences,"
The Review of Economics and Statistics,
MIT Press, vol. 88(1), pages 146-157, February.
- William H. Greene & Sherrie L. W. Rhine & Maude Toussaint-Comeau, 2003. "The importance of check-cashing businesses to the unbanked: racial/ethnic differences," Working Paper Series WP-03-10, Federal Reserve Bank of Chicago.
When requesting a correction, please mention this item's handle: RePEc:eee:quaeco:v:52:y:2012:i:2:p:162-172. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.