Do low-income workers benefit from 401(k) plans?

Toder, Eric, and Karen E. Smith. “Do low-income workers benefit from 401(k) plans?”. CRR WP 2011-14, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, September 2011. http://hdl.handle.net/2345/bc-ir:104833.
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Abstract

Economists frequently assume that employees "pay for" employer-provided fringe benefits, such as contributions to retirement plans, in the form of reduced wages. Because low-income employees receive little tax benefit from saving in qualified retirement plans, however, and may prefer immediate consumption to additional retirement accruals, they may not be willing to accept a one dollar reduction in their wage in return for an additional dollar contributed to their 401(k) plan, while high income workers may be willing to give up more than a dollar in wages to get the tax benefit...

Title
Do low-income workers benefit from 401(k) plans?
Author
Toder, Eric
Smith, Karen E.
Center
Center for Retirement Research
Genre
working paper
Date Issued
September 2011
Publisher
Center for Retirement Research at Boston College
Series Title
CRR WP
Series Number
2011-14
Persistent Link
http://hdl.handle.net/2345/bc-ir:104833
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing retirement

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