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Participation in and Contributions to 401(k) Pension Plans: Evidence from Plan Data

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  • Leslie E. Papke

Abstract

401(k) plans differ from traditional employer-sponsored pension plans in that employees are permitted to make voluntary pre-tax contributions. Hence, the sensitivity of participation and contributions to plan characteristics-notably the employer matching rate-may play a critical role in retirement saving. Using plan level data from Form 5500s filed annually with the Internal Revenue Service, I find that substantial increases occur when an employer moves from a zero to a small or moderately sized match; but that at higher match rates employee contributions fall.

Suggested Citation

  • Leslie E. Papke, 1995. "Participation in and Contributions to 401(k) Pension Plans: Evidence from Plan Data," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 311-325.
    • Handle: RePEc:uwp:jhriss:v:30:y:1995:i:2:p:311-325
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    More about this item

    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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