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Learning by doing: Active employer sponsored retirement savings plan participation and household wealth accumulation

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  • Seligman, Jason S.
  • Bose, Rana

Abstract

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.

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  • Seligman, Jason S. & Bose, Rana, 2012. "Learning by doing: Active employer sponsored retirement savings plan participation and household wealth accumulation," The Quarterly Review of Economics and Finance, Elsevier, vol. 52(2), pages 162-172.
    • Handle: RePEc:eee:quaeco:v:52:y:2012:i:2:p:162-172
    DOI: 10.1016/j.qref.2012.02.002
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    Cited by:

    1. Margaret Miller & Julia Reichelstein & Christian Salas & Bilal Zia, 2015. "Can You Help Someone Become Financially Capable? A Meta-Analysis of the Literature," The World Bank Research Observer, World Bank, vol. 30(2), pages 220-246.
    2. Jason Scott Seligman, 2012. "Evidence on the Financial Capability of Elder Workers Facing Lump-Sum Retirement Plan Distributions," Accounting and Finance Research, Sciedu Press, vol. 1(2), pages 177-177, November.
    3. Miguel Ampudia & Michael Ehrmann, 2016. "Financial Inclusion—What’s it Worth?," Staff Working Papers 16-30, Bank of Canada.

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    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • G2 - Financial Economics - - Financial Institutions and Services
    • I2 - Health, Education, and Welfare - - Education

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