IDEAS home Printed from https://ideas.repec.org/p/epa/cepawp/2014-2.html
   My bibliography  Save this paper

Explaining the Decline in the Offer Rate of Employer Retirement Plans Between 2001-2012

Author

Abstract

Workplace retirement plans (DC and DBs) help workers save for retirement conveniently, consistently, and automatically. But retirement account offer rates are steadily declining. Between 2001-2003 and 2010-2012, the retirement plan offer rate dropped from 63% to 55%. The drop is driven by a decline in both DB and DC plans. Using a probit model and an Oaxaca-Blinder threefold decomposition technique applied to data from the CPS for 2001-2003 and 2010-2012, and using longitudinal analysis of the SIPP 2008 panel waves 3 and 11, the authors find that the labor-contracting environment dominates individual and firm level variables among factors determining whether employers offer a retirement account to their workers. Therefore, attempts to raise retirement account offer rates must address the decline in workers’ bargaining power and the changes in norms relating to benefits provision. This study contributes to the important discussion about the trends in DB and DC coverage and the decline in retirement security.

Suggested Citation

  • Teresa Ghilarducci & Joelle Saad-Lessler, 2014. "Explaining the Decline in the Offer Rate of Employer Retirement Plans Between 2001-2012," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2014-2, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
  • Handle: RePEc:epa:cepawp:2014-2
    as

    Download full text from publisher

    File URL: http://www.economicpolicyresearch.org/images/docs/research/retirement_security/Ghilarducci_Lessler_2014-2_Final.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
    2. William E. Even & David A. Macpherson, 1994. "Why Did Male Pension Coverage Decline in the 1980s?," ILR Review, Cornell University, ILR School, vol. 47(3), pages 439-453, April.
    3. Yun, Myeong-Su, 2004. "Decomposing differences in the first moment," Economics Letters, Elsevier, vol. 82(2), pages 275-280, February.
    4. Parsons, Donald O., 1991. "The decline in private pension coverage in the United States," Economics Letters, Elsevier, vol. 36(4), pages 419-423, August.
    5. Peetz, D, 2002. "Individual contracts, bargaining and union membership," Australian Bulletin of Labour, National Institute of Labour Studies, vol. 28(1), pages 39-52.
    6. Richard B. Freeman, 1985. "Unions, Pensions, and Union Pension Funds," NBER Chapters, in: Pensions, Labor, and Individual Choice, pages 89-122, National Bureau of Economic Research, Inc.
    7. Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Bargaining power; employer retirement plan offer rate;

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

    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:2014-2. 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: (Bridget Fisher). General contact details of provider: http://edirc.repec.org/data/cenewus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.