The Impacts of Matching Contributions on Retirement Savings: Evidence from a Quasi-Natural Experiment

Sadettin Citci () and Halit Yanikkaya ()
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Sadettin Citci: Department of Economics, University of Zurich
Halit Yanikkaya: Gebze Technical University

No 1712, Working Papers from Economic Research Forum

Abstract: Using a large administrative dataset containing information for over 39 million private pension contracts and quasi-experimental research design provided by matching contribution policy reform in Turkey, we investigate the effectiveness of nationwide matching contributions in promoting saving outcomes and explore differences in responses to the program among participants. By leveraging two distinct policy changes, we estimate the marginal and net effects of matching contributions on participants’ saving decisions separately. Our differences-in-differences estimations reveal that the matching contribution policy increases contributions paid by 6 percent. Additionally, we analyze the impact of a sharp increase of 30 percent in the match threshold on participants’ contributions paid. Our results suggest that the nationwide matching contribution policy wields a notable yet relatively modest impact on augmenting saving contributions. Notably, we discern substantial variations in the responses to the program among different participant groups.

Pages: 40
Date: 2024-08-20, Revised 2024-08-20
New Economics Papers: this item is included in nep-age, nep-ara and nep-exp
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