Does mandatory retirement saving crowd out voluntary retirement saving?

Leora Friedberg, Adam Leive and Wenqiang Cai

Journal of Economic Behavior & Organization, 2024, vol. 225, issue C, 20-36

Abstract: We use administrative data from a large public university to study employee responses to mandatory retirement saving, which represent a policy alternative to nudges. In response to a substantial increase in mandatory saving, we observe full crowd-out of voluntary saving for a subset of low-contributing low earners and high-contributing high earners, but otherwise little crowd-out for most employees. On average, only 30 percent of the mandatory contributions are offset by lower voluntary contributions. Our results suggest that mandatory retirement saving is likely to increase total retirement saving.

Keywords: Retirement saving; Crowd-out; Household Behavior; Pensions; Passive saving (search for similar items in EconPapers)
JEL-codes: D14 G51 H24 H31 H55 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268124002427
Full text for ScienceDirect subscribers only

Related works:
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:eee:jeborg:v:225:y:2024:i:c:p:20-36

DOI: 10.1016/j.jebo.2024.06.024

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().