Understanding The Impact of Employer Matching on 401(k) Saving

Gary V. Engelhardt, Syracuse University
Anil Kumar, Syracuse University

June 2003 | Issue # 76

This article summarizes current research on the impact of employer matching on 401(k) saving. In particular, the authors outline the reasons why this impact is difficult to identify and describe their research with the Health and Retirement Study. They find greater diversity in matching provisions compared with previous studies and exploit this diversity in their statistical analyses which reveals that employer matching significantly raises 401(k) saving. The implications of this research for policy are also discussed in this article.

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