Information, Preferences, and Public Benefit Participation: Experimental Evidence from the Advance EITC and 401(k) Savings

Damon Jones

American Economic Journal: Applied Economics, 2010, vol. 2, issue 2, 147-63

Abstract: Within a field experiment, I present a treatment group with reductions in information, administrative, stigma, and procrastination costs associated with the Advance EITC. The treatment increases Advance participation from 0.3 to 1.2 percent. Another treatment simultaneously encourages 401(k) savings, increasing 401(k) participation from 46 to 50 percent. However, there is no additional increase in Advance participation when coupled with the 401(k) treatment, casting doubt on a long-term forced savings motive. The results indicate that EITC recipients actively forgo the Advance. Further work is needed to identify what underlies these preferences. Possible explanations include uncertainty and/or short-term forced savings motives. (JEL D14, D82, H23, H24, H31)

JEL-codes: D14 D82 H23 H24 H31 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/app.2.2.147
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Citations: View citations in EconPapers (34)

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