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The Effect of Providing Peer Information on Retirement Savings Decisions / John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian, Katherine L. Milkman.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Beshears, John.
Contributor:
National Bureau of Economic Research.
Choi, James J.
Laibson, David.
Madrian, Brigitte C.
Milkman, Katherine L.
Series:
Working Paper Series (National Bureau of Economic Research) no. w17345.
NBER working paper series no. w17345
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2011.
Summary:
We conducted a field experiment in a 401(k) plan to measure the effect of disseminating information about peer behavior on savings. Low-saving employees received simplified plan enrollment or contribution increase forms. A randomized subset of forms stated the fraction of age-matched coworkers participating in the plan or age-matched participants contributing at least 6% of pay to the plan. We document an oppositional reaction: the presence of peer information <i>decreased</i> the savings of non-participants who were ineligible for 401(k) automatic enrollment, and higher observed peer savings rates also decreased savings. Discouragement from upward social comparisons seems to drive this reaction.
Notes:
Print version record
August 2011.

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