DO EMPLOYER PENSION CONTRIBUTIONS REFLECT EMPLOYEE PREFERENCES? EVIDENCE FROM A RETIREMENT SAVINGS REFORM IN DENMARK.
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SUBMITTER: Fadlon I
PROVIDER: S-EPMC5130153 | biostudies-literature | 2015 Oct
REPOSITORIES: biostudies-literature
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DO EMPLOYER PENSION CONTRIBUTIONS REFLECT EMPLOYEE PREFERENCES? EVIDENCE FROM A RETIREMENT SAVINGS REFORM IN DENMARK.
Fadlon Itzik I Laird Jessica J Nielsen Torben Heien TH
American economic journal. Applied economics 20151001 3
This paper studies how firms set contributions to employer-provided 401(k)-type pension plans. Using a reform that decreased the subsidy to contributions to capital pension accounts for Danish workers in the top income tax bracket, we provide strong evidence that employers' contributions are based on their employees' savings preferences. We find an immediate decrease in employer contributions to capital accounts, whose magnitude increased in the share of employees directly affected by the reform ...[more]
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