Publication: A behavioral study of Roth versus traditional retirement savings accounts
A behavioral study of Roth versus traditional retirement savings accounts
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Bohr, C. E., Holt, C. A., & Schubert, A. V. (2023). A behavioral study of Roth versus traditional retirement savings accounts (No. 440; Working Paper Series / Department of Economics).
Abstract
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Abstract
Motivated by a popular perception that Roth accounts are welfare-improving for most people, this paper compares the effects of mandated Traditional (tax-deferred) or Roth (taxprepaid) retirement policies in a controlled laboratory setting. Selection effects, which complicate analyses of observational data, are avoided by random assignment to policies. Subjects receive exogenous incomes during “working” periods, followed by no-income “retirement” periods. In each period, subjects decide how many lab dollars to convert into “takehome pa
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E21
H24
J32
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Citations
Bohr, C. E., Holt, C. A., & Schubert, A. V. (2023). A behavioral study of Roth versus traditional retirement savings accounts (No. 440; Working Paper Series / Department of Economics).