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How 401(k) Plans Make Recessions Worse

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Abstract

This study looks past the decline in housing values, the success of traditional automatic stabilizers and stimulus spending as explanations of the dynamics of the recession. Annuity based retirement accounts backed by government programs also helped the economy, while financially-based retirement programs like 401(k) type programs, hurt the economy.

Suggested Citation

  • Teresa Ghilarducci & Joelle Saad-Lessler, 2014. "How 401(k) Plans Make Recessions Worse," SCEPA working paper series. 2014-9, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    • Handle: RePEc:epa:cepawp:2014-10
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    File URL: https://www.economicpolicyresearch.org/images/docs/research/retirement_security/WP_2014-9_How_401k_Plans_Make_Recessions_Worse.pdf
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    Cited by:

    1. Francisco G. Ferreira & Nora Lustig & Daniel Teles, 2015. "Appraising cross-national income inequality databases: An introduction," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(4), pages 497-526, December.
    2. Arief Anshory Yusuf & Andy Sumner, 2017. "Multidimensional poverty in Indonesia: How inclusive has economic growth been?," Departmental Working Papers 2017-09, The Australian National University, Arndt-Corden Department of Economics.
    3. Peter Edward & Andy Sumner, 2015. "New estimates of global poverty and inequality: How much difference do price data," Working Papers 365, ECINEQ, Society for the Study of Economic Inequality.
    4. Arjun Jayadev & Rahul Lahoti & Sanjay Reddy, 2015. "The Middle Muddle: Conceptualizing and Measuring the Global Middle Class," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 193, Courant Research Centre PEG.

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    More about this item

    Keywords

    Automatic stabilizers; Social Security; 401(k) plans;
    All these keywords.

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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