IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Family background and the decision to provide for old age: a siblings approach

  • Bettina Lamla

    ()

Registered author(s):

    The Riester pensions in Germany provide helpful evidence to better understand the determinants of and the barriers to the demand for old-age provision products. The paper argues that families are of key importance in the decision making process to buy such a private pension. Families do not only shape the way we make our financial decisions they can also be a source for cost-effective and reliable information. Depending on certain characteristics some individuals can process this information more easily. Results confirm that individual characteristics, in particular income and education, as well as family characteristics are correlated with Riester ownership. Adding a dynamic element to the analysis I find strong sequential correlations in Riester ownership between siblings. However, these correlations become weaker over time as the number of Riester owners in other social circles grows. Once a critical mass has been reached, positive spillovers can create a social multiplier leading to a higher coverage with private pensions in the future. Copyright Springer Science+Business Media New York 2013

    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.

    File URL: http://hdl.handle.net/10.1007/s10663-013-9212-4
    Download Restriction: Access to full text is restricted to subscribers.

    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.

    Article provided by Springer in its journal Empirica.

    Volume (Year): 40 (2013)
    Issue (Month): 3 (August)
    Pages: 483-504

    as
    in new window

    Handle: RePEc:kap:empiri:v:40:y:2013:i:3:p:483-504
    Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100261

    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.:

    as in new window
    1. Daniel Schunk, 2007. "What Determines the Saving Behavior of German Households? An Examination of Saving Motives and Saving Decisions," MEA discussion paper series 07124, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    2. Coppola, Michela & Lamla, Bettina, 2013. "Saving and Old Age Provision in Germany (SAVE): Design and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 133(1), pages 109-116.
    3. Winter, Joachim & Schlafmann, Kathrin & Rodepeter, Ralf, 2012. "Rules of Thumb in Life-cycle Saving Decisions," Munich Reprints in Economics 19721, University of Munich, Department of Economics.
    4. Coppola, Michela & Reil-Held, Anette, 2009. "Dynamik der Riester-Rente: Ergebnisse aus SAVE 2003 bis 2008," MEA discussion paper series 09195, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    5. E. Glaeser & B. Sacerdote & Jose A. Scheinkman, 2003. "The Social Multiplier," Levine's Working Paper Archive 506439000000000130, David K. Levine.
    6. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2000. "The Role of Social Capital in Financial Development," CRSP working papers 511, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
    7. Martin Spieß & Martin Kroh & Rainer Pischner & Gert G. Wagner, 2008. "On the Treatment of Non-Original Sample Members in the German Household Panel Study (SOEP): Tracing, Weighting, and Frequencies," SOEPpapers on Multidisciplinary Panel Data Research 98, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Sewin Chan & Ann Huff Stevens, 2003. "What You Don't Know Can't Help You: Pension Knowledge and Retirement Decision Making," NBER Working Papers 10185, National Bureau of Economic Research, Inc.
    9. Esther Duflo & Emmanuel Saez, 2002. "The Role of Information and Social Interactions in Retirement Plan Decisions: Evidence from a Randomized Experiment," NBER Working Papers 8885, National Bureau of Economic Research, Inc.
    10. Harrison Hong & Jeffrey D. Kubik & Jeremy C. Stein, 2004. "Social Interaction and Stock-Market Participation," Journal of Finance, American Finance Association, vol. 59(1), pages 137-163, 02.
    11. Barnea, Amir & Cronqvist, Henrik & Siegel, Stephan, 2010. "Nature or nurture: What determines investor behavior?," Journal of Financial Economics, Elsevier, vol. 98(3), pages 583-604, December.
    12. Michael Ziegelmeyer & Julius Nick, 2013. "Backing out of private pension provision: lessons from Germany," Empirica, Springer, vol. 40(3), pages 505-539, August.
    13. Thaler, Richard H, 1990. "Saving, Fungibility, and Mental Accounts," Journal of Economic Perspectives, American Economic Association, vol. 4(1), pages 193-205, Winter.
    14. Jeffrey R. Brown & Zoran Ivkovic & Paul A. Smith & Scott Weisbenner, 2008. "Neighbors Matter: Causal Community Effects and Stock Market Participation," Journal of Finance, American Finance Association, vol. 63(3), pages 1509-1531, 06.
    15. 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.
    16. Laibson, David I., 1997. "Golden Eggs and Hyperbolic Discounting," Scholarly Articles 4481499, Harvard University Department of Economics.
    17. Steven F. Venti & David A. Wise, 1987. "Have IRAs Increased U.S. Saving?: Evidence from Consumer Expenditure Surveys," NBER Working Papers 2217, National Bureau of Economic Research, Inc.
    18. John P. Haisken-DeNew & Markus H. Hahn, 2010. "PanelWhiz - Efficient Data Extraction of Complex Panel Data Sets: An Example Using the German SOEP," Data Documentation 53, DIW Berlin, German Institute for Economic Research.
    19. Annamaria Lusardi, 2006. "Planning and Financial Literacy: How Do Women Fare?," Working Papers wp136, University of Michigan, Michigan Retirement Research Center.
    20. Schnabel, Reinhold & Schnabel, Isabel, 2002. "Family and gender still matter: the heterogeneity of returns to education in Germany," ZEW Discussion Papers 02-67, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    21. Gasche, Martin & Börsch-Supan, Axel, 2010. "Kann die Riester-Rente die Rentenlücke in der gesetzlichen Rente schließen?," MEA discussion paper series 10201, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    22. Michela Coppola & Martin Gasche, 2011. "Die Riester-Förderung — Mangelnde Information als Verbreitungshemmnis," Wirtschaftsdienst, Springer, vol. 91(11), pages 792-799, November.
    23. John Fitzgerald & Peter Gottschalk & Robert Moffitt, 1998. "An Analysis of the Impact of Sample Attrition on the Second Generation of Respondents in the Michigan Panel Study of Income Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 300-344.
    24. Matthias Schonlau & Nicole Watson & Martin Kroh, 2010. "Household Survey Panels: How Much Do Following Rules Affect Sample Size?," SOEPpapers on Multidisciplinary Panel Data Research 347, DIW Berlin, The German Socio-Economic Panel (SOEP).
    25. Axel H. Börsch-Supan & Michela Coppola & Anette Reil-Held, 2012. "Riester Pensions in Germany: Design, Dynamics, Targetting Success and Crowding-In," NBER Working Papers 18014, National Bureau of Economic Research, Inc.
    26. Axel Boersch-Supan & Christina B. Wilke, 2004. "The German Public Pension System: How it Was, How it Will Be," NBER Working Papers 10525, National Bureau of Economic Research, Inc.
    27. Bucher-Koenen, Tabea, 2011. "Financial Literacy, Riester Pensions, and Other Private Old Age Provision in Germany," MEA discussion paper series 11250, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    28. Hans Fehr & Dirk Kiesewetter & Michael Myßen, 2003. "Die Riester-Rente - ein Flop?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 56(05), pages 5-14, 03.
    29. Gale, W.G. & Scholz, J.K., 1990. "Ira'S And Households Saving," Papers 16, California Los Angeles - Applied Econometrics.
    30. Christian Pfarr & Udo Schneider, 2011. "Anreizeffekte und Angebotsinduzierung im Rahmen der Riester‐Rente: Eine empirische Analyse geschlechts‐ und sozialisationsbedingter Unterschiede," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(1), pages 27-46, 02.
    31. Börsch-Supan, Axel & Reil-Held, Anette & Schunk, Daniel, 2008. "Saving incentives, old-age provision and displacement effects: evidence from the recent German pension reform," Journal of Pension Economics and Finance, Cambridge University Press, vol. 7(03), pages 295-319, November.
    32. repec:ecj:econjl:v:122:y:2012:i::p:479-501 is not listed on IDEAS
    33. Annamaria Lusardi & Olivia S. Mitchell, 2011. "Financial Literacy around the World: An Overview," NBER Working Papers 17107, National Bureau of Economic Research, Inc.
    34. Kornelia Hagen & Lucia A. Reisch, 2010. "Riesterrente: Politik ohne Marktbeobachtung," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 77(8), pages 2-14.
    35. Shefrin, Hersh M & Thaler, Richard H, 1988. "The Behavioral Life-Cycle Hypothesis," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 609-43, October.
    36. Fitzgerald John M, 2011. "Attrition in Models of Intergenerational Links Using the PSID with Extensions to Health and to Sibling Models," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(3), pages 1-63, September.
    37. Giacomo Corneo & Matthias Keese & Carsten Schröder, 2009. "The Riester Scheme and Private Savings: An Empirical Analysis based on the German SOEP," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(2), pages 321-332.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:kap:empiri:v:40:y:2013:i:3:p:483-504. 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: (Guenther Eichhorn)

    or (Christopher F. Baum)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.