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Boosting pension enrollment and household consumption by example: A field experiment on information provision

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  • Bai, Chong-En
  • Chi, Wei
  • Liu, Tracy Xiao
  • Tang, Chao
  • Xu, Jian

Abstract

In this study, we conduct a large-scale field experiment in the Guangdong province of China to examine the effect of informing individuals about government pension programs on their pension enrollment decisions and household consumption. Our field experiment lasts 12 months and involves 2539 individuals from 1064 households randomly selected from three cities in Guangdong. We send an informational brochure to participants, designed differently for those in the control and treatment groups, and repeat the intervention three times. We find that, compared to the control group, those who receive concrete examples of pension benefits show a greater increase in pension enrollment, with a significant effect for those aged 45–55 years. We also find that, among households headed by participants aged 45–55 years, those who receive personalized benefit information exhibit significantly higher consumption than the control group. These findings support the effectiveness of combining concrete and personalized information in designing informational material as well as the importance of targeting the most responsive population during information delivery.

Suggested Citation

  • Bai, Chong-En & Chi, Wei & Liu, Tracy Xiao & Tang, Chao & Xu, Jian, 2021. "Boosting pension enrollment and household consumption by example: A field experiment on information provision," Journal of Development Economics, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:deveco:v:150:y:2021:i:c:s0304387820301978
    DOI: 10.1016/j.jdeveco.2020.102622
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    Cited by:

    1. Xinxin Ma, 2023. "Internet Use and Risky Financial Market Participation: Evidence from China," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 15(2), pages 1-1, February.
    2. Xinxin Ma, 2022. "Social Insurances and Risky Financial Market Participation: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(10), pages 2957-2975, August.
    3. Liu, Na & Li, Jing, 2024. "The time code of online consumption: Exploring the impact of work hours on online consumption in the retail industry," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).

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    More about this item

    Keywords

    Pension enrollment; Household consumption; Field experiment;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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