$100 bills on the sidewalk suboptimal saving in 401(k) plans / James J. Choi, David Laibson, Brigitte C. Madrian.

Author/creator Choi, James J.
Other author Laibson, David I.
Other author Madrian, Brigitte C. (Brigitte Condie)
Other author National Bureau of Economic Research.
Format Electronic
Publication InfoCambridge, MA : National Bureau of Economic Research,
Supplemental ContentFull text available from NBER Working Papers
Subjects

Variant title One hundred dollar bills on the sidewalk
SeriesNBER working paper series ; working paper 11554
Working paper series (National Bureau of Economic Research : Online) ; working paper no. 11554. UNAUTHORIZED
Summary "It is typically difficult to determine whether households save optimally. But in some cases, savings incentives are strong enough to imply sharp normative restrictions. We consider employees who receive employer matching contributions in their 401(k) plan and are allowed to make discretionary, penalty-free, in-service withdrawals. For these employees, contributing below the match threshold is a dominated action. Nevertheless, half of employees with these clear-cut incentives do contribute below the match threshold, foregoing matching contributions that average 1.3% of their annual pay. Providing these "undersavers" with specific information about the free lunch they are giving up fails to raise their contribution rates"--National Bureau of Economic Research web site.
General noteTitle from PDF file as viewed on 8/25/2005.
Bibliography noteIncludes bibliographical references.
Access restrictionAvailable only to authorized users.
Other formsAlso available in print.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
LCCN 2005619198

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