The Effect of Providing Peer Information on Retirement Savings Decisions

John Beshears, James Choi, David Laibson, Brigitte Madrian and Katherine Milkman

No 17345, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We conducted a field experiment in a 401(k) plan to measure the effect of disseminating information about peer behavior on savings. Low-saving employees received simplified plan enrollment or contribution increase forms. A randomized subset of forms stated the fraction of age-matched coworkers participating in the plan or age-matched participants contributing at least 6% of pay to the plan. We document an oppositional reaction: the presence of peer information decreased the savings of non-participants who were ineligible for 401(k) automatic enrollment, and higher observed peer savings rates also decreased savings. Discouragement from upward social comparisons seems to drive this reaction.

JEL-codes: D03 D14 D83 D91 (search for similar items in EconPapers)
Date: 2011-08
New Economics Papers: this item is included in nep-hrm and nep-lab
Note: AG LS
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (54)

Published as JOHN BESHEARS & JAMES J. CHOI & DAVID LAIBSON & BRIGITTE C. MADRIAN & KATHERINE L. MILKMAN, 2015. "The Effect of Providing Peer Information on Retirement Savings Decisions," The Journal of Finance, vol 70(3), pages 1161-1201.

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Journal Article: The Effect of Providing Peer Information on Retirement Savings Decisions (2015)
Working Paper: The Effect of Providing Peer Information on Retirement Savings Decisions (2015)
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