The decision to defer

factors affecting employee deferral incentives

Authors

  • M. Kabir Hassan Department of Economics and Finance, University of New Orleans, Lakefront, 2000 Lakeshore Dr., New Orleans, LA 70148, USA
  • Shari Lawrence Asset Planning Services Inc., 298 Oakwood Drive, Mandeville, LA 70448, USA

DOI:

https://doi.org/10.1016/S1057-0810(01)00084-1

Keywords:

Tobit, Probit, Survey of Consumer Finances

Abstract

The purpose of this study is to examine employee participation and contribution incentives among defined contribution retirement plans. Using data from the 1995 Survey of Consumer Finances, probit and tobit analysis indicates no signi®cant relationship between employer contributions and an employee's decision to make contributions into his or her retirement plan. However, of those employees who are contributing to their pension plans, the employer contribution percentage has a signi®cant positive effect on employee contribution rates. Therefore, the ®ndings support our hypothesis of a direct relationship between the average employee deferral percentage and the existence of an employer matching contribution. Copyright 2001 Elsevier Science Inc. All rights reserved.

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Published

2001-12-30

How to Cite

Hassan, M. K., & Lawrence, S. (2001). The decision to defer: factors affecting employee deferral incentives. Financial Services Review, 10(1-4), 45–54. https://doi.org/10.1016/S1057-0810(01)00084-1

Issue

Vol. 10 No. 1-4 (2001): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2001 Elsevier Science Inc.

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