Tax incentive and household saving strategy

A regression discontinuity approach to catch-up contributions

Bibliographic Data

ID12008745
AuthorsTrang Hoang (0000-0001-8940-4105, University of Nebraska at Omaha, corresponding author), James R Harrington (0000-0003-3426-3100, Public and Nonprofit Management, The University of Texas at Dallas, Richardson, TX, USA)
Year2020
Volume60
Issue4
Pages755-770
Publication date2020-05-01
Open AccessNo
TypeARTICLE
VenueThe Social Science Journal (JOURNAL)
Journal identifiersISSN: 0362-3319 • E-ISSN: 1873-5355
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/03623319.2020.1750844
OpenAlexW3022607256
LanguageEN
References cited54

This study examined how the catch-up provision – a tax-deferral incentive – impacts total retirement saving and household saving strategies. Using the Survey of Consumer Finance from 2004 to 2016, this study found that the catch-up provision does not have a positive impact on total retirement saving in the majority of cases; however, this provision was found to positively impact contributions to defined contribution plans among middle-class households whose income ranges were between $50,00 and $100,000. The study also found that household saving and consumption habits, which include self-control factors, as well as employer-match programs, play an important role in increasing savings for retirement. The results of this study have implications for future work on a broad spectrum of social policies and programs that promote financial security in retirement

Business · Consumption (sociology · Control (management · Deferral · Demographic economics · Economics · Incentive · Labour economics · Microeconomics · Public economics · Regression discontinuity design · Social security · Tax incentive · Financial Literacy, Pension, Retirement Analysis · Gender, Labor, and Family Dynamics · Housing Market and Economics · Finance

Tools

Open DOISci-Hub