Economics and BAFI Research Seminarhttps://weatherhead.case.edu/events/2013/11/15/economics-research-seminar
Please join the Economics and Banking and Finance Departments for a research seminar. This event is open to all Case Western Reserve University faculty, Ph.D. students, economic majors and minors, and those interested in economics research.
Contact Teresa Kabat at firstname.lastname@example.org or 216.368.4110 for additional information.
ABSTRACT: There is growing concern about households’ ability to make appropriate savings
decisions. Providing employees information about their coworkers’ savings behavior is one
natural way to offer guidance. We conducted a field experiment in a 401(k) plan to measure the
effect of such peer information on savings choices. Low-saving employees were sent a simplified plan enrollment or contribution increase form. A randomized subset of forms included information on the (high) fraction of coworkers either participating in or contributing at least 6% of pay to the plan. In contrast to prior literature, we document an oppositional reaction: peer information decreased the savings of non-participants who were not eligible for automatic
enrollment in the 401(k). Discouragement from upward social comparisons seems to play a role in the oppositional reaction. The presence of peer information did not on average significantly alter the savings decisions of recipients who had previously opted out of automatic 401(k) enrollment.
For undergraduate programs: learn more information here or apply now. For graduate programs: request more information or apply now. You can also register for one of over 70 open enrollment courses through Executive Education.
Weatherhead School of Management at Case Western Reserve University cultivates creativity, innovation, and purpose-driven leadership to design a better world.