Jump to ContentJump to Main Navigation
Research Findings in the Economics of Aging$
Users without a subscription are not able to see the full content.

David A. Wise

Print publication date: 2010

Print ISBN-13: 9780226903064

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226903088.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2017. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use (for details see http://www.chicago.universitypressscholarship.com/page/privacy-policy).date: 22 June 2017

The Impact of Employer Matching on Savings Plan Participation under Automatic Enrollment

The Impact of Employer Matching on Savings Plan Participation under Automatic Enrollment

Chapter:
(p.311) 11 The Impact of Employer Matching on Savings Plan Participation under Automatic Enrollment
Source:
Research Findings in the Economics of Aging
Author(s):

John Beshears

James J. Choi

David Laibson

Brigitte C. Madrian

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226903088.003.0012

This chapter discusses the continuing series of studies on the structural features of 401(k) plans. Companies have used a variety of approaches to encourage participation in employer sponsored savings plans. The vast majority of large firms now offer the most common approach, the provision of an employer matching contribution. Even with a match, however, savings plan participation rates are often surprisingly low, and their effect on participation is found to be relatively small. Automatic enrollment is an alternative mechanism for increasing savings plan participation. All of the companies in which automatic enrollment has been studied to date have also offered an employer matching contribution. The study disentangles the effects of matching and automatic enrollment in two ways. The first is to study a large firm with automatic enrollment that replaced its employer match with a noncontingent employer contribution to the plan, thereby eliminating the incentive that was provided by the match. The second approach is to pool the participation data from nine firms, all with automatic enrollment, but with varying matching provisions.

Keywords:   automatic enrollment, 401(k) plans, employer, company

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.