TY - JOUR
T1 - Retirement plan type and employee mobility
T2 - The role of selection
AU - Goda, Gopi Shah
AU - Jones, Damon
AU - Manchester, Colleen Flaherty
N1 - Publisher Copyright:
© 2017 by the Board of Regents of the University ofWisconsin System.
PY - 2017/6/1
Y1 - 2017/6/1
N2 - Relative to defined benefit (DB) plans, defined contribution (DC) plans have been linked to greater employee mobility. Because employees with different underlying mobility tendencies may sort across plans or firms, the relationship between plan type and mobility may be due to selection. We identify the role of selection by exploiting a natural experiment at an employer, in which the transition fromaDBto aDCpension planwas affected by default rules.Using the default assignment as a source of exogenous variation in plan enrollment, we find that employees with higher mobility tendencies self-select into the DC plan.
AB - Relative to defined benefit (DB) plans, defined contribution (DC) plans have been linked to greater employee mobility. Because employees with different underlying mobility tendencies may sort across plans or firms, the relationship between plan type and mobility may be due to selection. We identify the role of selection by exploiting a natural experiment at an employer, in which the transition fromaDBto aDCpension planwas affected by default rules.Using the default assignment as a source of exogenous variation in plan enrollment, we find that employees with higher mobility tendencies self-select into the DC plan.
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U2 - 10.3368/jhr.52.3.0315-6997R1
DO - 10.3368/jhr.52.3.0315-6997R1
M3 - Article
AN - SCOPUS:85024476812
SN - 0022-166X
VL - 52
SP - 654
EP - 679
JO - Journal of Human Resources
JF - Journal of Human Resources
IS - 3
ER -