1 option
Incorporating Employee Heterogeneity into Default Rules for Retirement Plan Selection / Gopi Shah Goda, Colleen Flaherty Manchester.
- Format:
- Book
- Author/Creator:
- Goda, Gopi Shah.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w16099.
- NBER working paper series no. w16099
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2010.
- Summary:
- We study the effect of incorporating heterogeneity into default rules by examining the choice between retirement plans at a firm which transitioned from a defined benefit (DB) to a defined contribution (DC) plan. The default plan for existing employees varied discontinuously depending on their age. Employing regression discontinuity techniques, we find that the default increased the probability of enrollment in the default plan by 60 percentage points. We develop a framework to solve for the optimal default rule analytically and numerically and find that considerable welfare gains are possible if defaults vary by observable characteristics.
- Notes:
- Print version record
- July 2010.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.