Keywords

employer matching, savings participation, retirement plans

Abstract

Companies have used a variety of approaches to encourage participation in employer- sponsored savings plans. The most common approach, the provision of an employer matching contribution, is now offered by the vast majority of large fi rms (Profi t Sharing Council of America 2006). Even with a match, however, savings plan participation rates are often surprisingly low (Choi, Laibson, and Madrian 2005), and empirical studies of matching contributions’ effect on plan participation have uniformly found relatively small effects (Andrews 1992; Papke and Poterba 1995; Papke 1995; Bassett, Fleming, and Rodrigues 1998; Kusko, Poterba, and Wilcox 1998; Choi et al. 2002; Even and Macpherson 2005; Dufl o et al. 2006; Engelhardt and Kumar 2007).

Original Publication Citation

“The Impact of Employer Matching on Savings Plan Participation under Automatic Enrollment.” 2010. In David A. Wise, ed., Research Findings in the Economics of Aging, University of Chicago Press, pp. 311-327 (with John Beshears, James J. Choi and David Laibson). http://www.nber.org/chapters/c8208.pdf

Document Type

Peer-Reviewed Article

Publication Date

2010

Publisher

University of Chicago Press

Language

English

College

Marriott School of Business

Department

Finance

University Standing at Time of Publication

Full Professor

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