The Effects of Financial Education in the Workplace: Evidence from a Survey of Employers
June 1996 We examine the effects of education on financial decision-making skills by identifying an interesting source of variation in pertinent training. During the 1990s, an increasing number of individuals were exposed to programs of financial education provided by their employers. If, as some have argued, low saving frequently results from a failure to appreciate economic vulnerabilities, then education of this form could prove to have a powerful effect on rates of behavior. The current paper undertakes an analysis of these programs using a previously unexploited survey of employers. We find that both participation in and contributions to voluntary savings plans are significantly higher when employers offer retirement seminars. The effect is typically much stronger for non-highly compensated employees than for highly compensated employees. The frequency of seminars emerges as a particularly important correlate of behavior. We are unable to detect any effects of written materials, such as newsletters and summary plan descriptions, regardless of frequency. We also present evidence on other determinants of plan activity.
|Date of creation:||Jun 1996|
|Date of revision:|
|Contact details of provider:|| Postal: Ralph Landau Economics Building, Stanford, CA 94305-6072|
Web page: http://www-econ.stanford.edu/econ/workp/
More information through EDIRC
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.:
- B. Douglas Bernheim, 1996. "Rethinking Saving Incentives," Working Papers 96009, Stanford University, Department of Economics.
- Leslie E. Papke, 1992.
"Participation in and Contributions to 401(k) Pension Plans: Evidence om Plan Data,"
NBER Working Papers
4199, National Bureau of Economic Research, Inc.
- Leslie E. Papke, 1995. "Participation in and Contributions to 401(k) Pension Plans: Evidence from Plan Data," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 311-325.
- Leslie E. Papke & Mitchell A. Petersen & James M. Poterba, 1996.
"Do 401(k) Plans Replace Other Employer-Provided Pensions?,"
in: Advances in the Economics of Aging, pages 219-240
National Bureau of Economic Research, Inc.
- Leslie E. Papke & Mitchell Petersen & James M. Poterba, 1993. "Did 401(k) Plans Replace Other Employer Provided Pensions?," NBER Working Papers 4501, National Bureau of Economic Research, Inc.
- David Card, 1994. "Earnings, Schooling, and Ability Revisited," NBER Working Papers 4832, National Bureau of Economic Research, Inc.
- B. Douglas Bernheim & John Karl Scholz, 1992.
"Private Saving and Public Policy,"
NBER Working Papers
4215, National Bureau of Economic Research, Inc.
- Poterba, J.M. & Venti, S.F. & Wise, D.A., 1992.
"401(k) Plans and Tax-Deferred Savings,"
92-14, Massachusetts Institute of Technology (MIT), Department of Economics.
- King, Mervyn, 1992. "Growth and distribution," European Economic Review, Elsevier, vol. 36(2-3), pages 585-592, April.
- B. Douglas Bernheim & Daniel M. Garrett, 1996.
"The Determinants and Consequences of Financial Education in the Workplace: Evidence from a Survey of Households,"
NBER Working Papers
5667, National Bureau of Economic Research, Inc.
- B. Douglas Bernheim & Daniel M. Garrett, 1996. "The Determinants and Consequences of Financial Education in the Workplace: Evidence from a Survey of Households," Working Papers 96007, Stanford University, Department of Economics.
- Eric M. Engen & William G. Gale & John Karl Scholz, 1994. "Do Saving Incentives Work?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1), pages 85-180.
- Douglas D. Bernheim, . "Financial Illiteracy, Education, and Retirement Saving," Pension Research Council Working Papers 96-7, Wharton School Pension Research Council, University of Pennsylvania.
When requesting a correction, please mention this item's handle: RePEc:wop:stanec:96011. 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: (Thomas Krichel)
If references are entirely missing, you can add them using this form.