Pensions and Household Wealth Accumulation

TitlePensions and Household Wealth Accumulation
Publication TypeJournal Article
Year of Publication2011
AuthorsEngelhardt, GV, Kumar, A
JournalThe Journal of Human Resources
Call Numbernewpubs20110418_Engelhardt.pdf
KeywordsAdult children, Employment and Labor Force, Methodology, Net Worth and Assets, Pensions

Economists have long suggested that higher private pension benefits crowd out other sources of household wealth accumulation. We exploit detailed information on pensions and lifetime earnings for older workers in the 1992 wave of the Health and Retirement Study and employ an instrumental-variable (IV) identification strategy to estimate crowd-out. The IV estimates suggest statistically significant crowd-out: each dollar of pension wealth is associated with a 53 67 cent decline in nonpension wealth. With less precision, we use an instrumental-variable quantile regression estimator and find that most of the effect is concentrated in the upper quantiles of the wealth distribution.

Endnote Keywords

pension Wealth/Regression analysis/Older workers/Pensions/Estimating techniques/Households/Wealth

Endnote ID


Citation Key7578