An Equilibrium Theory of Retirement Plan Design

• 成果类型: Article
• 署名作者: Bubb, Ryan; Warren, Patrick L.
• 署名单位: New York University; Clemson University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20180605
• 发表日期: 2020
• 页码: 22-45
• 关键词: self-control; provision; ECONOMICS

摘要

We develop an equilibrium theory of employer-sponsored retirement plan design using a behavioral contract theory approach. The operation of the labor market results in retirement plans that generally cater to, rather than correct, workers' mistakes. Our theory provides new explanations for a range of facts about retirement plan design, including the use of employer matching contributions and the use of default contribution rates in automatic enrollment plans that lower many workers' savings. We provide novel evidence for our theory from a sample of plans.