EconPapers    
Economics at your fingertips  
 

Do Low-Income Workers Benefit from 401(k) Plans?

Eric Toder and Karen Smith ()

Working Papers, Center for Retirement Research at Boston College from Center for Retirement Research

Abstract: Economists frequently assume that employees "pay for" employer-provided fringe benefits, such as contributions to retirement plans, in the form of reduced wages. Because low-income employees receive little tax benefit from saving in qualified retirement plans, however, and may prefer immediate consumption to additional retirement accruals, they may not be willing to accept a one dollar reduction in their wage in return for an additional dollar contributed to their 401(k) plan, while high income workes may be willing to give up more than a dollar in wages to get the tax benefit.

Pages: 45 pages
Date: 2011-09, Revised 2011-09
New Economics Papers: this item is included in nep-age and nep-lab
References: Add references at CitEc
Citations:

Downloads: (external link)
http://crr.bc.edu/working-papers/do-low-income-workers-benefit-from-401k-plans/ R

Related works:
Working Paper: Do Low-Income Workers Benefit From 401(k) Plans? (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:crr:crrwps:wp2011-14

Access Statistics for this paper

More papers in Working Papers, Center for Retirement Research at Boston College from Center for Retirement Research Contact information at EDIRC.
Bibliographic data for series maintained by Amy Grzybowski () and Christopher F Baum ().

 
Page updated 2025-03-30
Handle: RePEc:crr:crrwps:wp2011-14