Earnings Volatility and 401(k) Contributions

Teresa Ghilarducci, Joelle Saad-Lessler and Gayle Reznik
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Gayle Reznik: Schwartz Center for Economic Policy Analysis (SCEPA), https://www.economicpolicyresearch.org

No 2017-07, SCEPA working paper series. from Schwartz Center for Economic Policy Analysis (SCEPA), The New School

Abstract: This paper finds that negative economic shocks cause 401(k) contribution behavior to react in ways consistent with reactions to fear and past trauma. If employees participating in 401(k) plans did not experience real earnings declines or unemployment spells between 2009 and 2012, then their contribution rates would have been 5% higher and each person would have contributed US $193 more toward their defined contribution plan accounts.

Keywords: private pensions; non-wage compensation; 401(k) plans; retirement savings (search for similar items in EconPapers)
JEL-codes: D14 J26 J32 (search for similar items in EconPapers)
Date: 2017-05
New Economics Papers: this item is included in nep-age
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Earnings volatility and 401(k) contributions (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:epa:cepawp:2017-14

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