Title

The Persistence of Employee 401(k) Contributions

Award Year

2009

Grant Type

Policy research grant

Description

This study examines whether workers who initially contribute to their company’s 401(k) plan consistently make contributions over their careers. Using data from the Panel Study of Income Dynamics (PSID), this study documents and describes the persistency in which workers contribute to their 401(k) plans using four data points from 1999, 2001, 2003, and 2005. It examines how persistency varies across demographic and economic groups. It also investigates the correlation between changes in the stock market and persistency, as the rise and fall of the stock market from 1990-2004 provides a particularly volatile period for 401(k) contributions.

Grant Product

The Persistence of Employee 401(k) Contributions Over a Major Stock Market Cycle: Evidence on the Limited Power of Inertia on Savings Behavior
Upjohn Institute Working Paper 11-174

The Lack of Persistence of Employee Contributions to Their 401(k) Plans May Lead to Insufficient Retirement Savings
Upjohn Institute Policy Paper 2011-008

The Persistence of Employee 401(k) Contributions Over a Major Stock Market Cycle: The Limited Power of Inertia
Benefits Quarterly, 2013 Third Quarter, 29(3): 51-65

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