Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108689
Authors: 
Butrica, Barbara A.
Karamcheva, Nadia S
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 8807
Abstract: 
This study uses restricted-access employer-level microdata from the National Compensation Survey to examine the relationship between automatic enrollment and employee compensation. By boosting plan participation, automatic enrollment has the potential to increase employer defined contribution plan costs as previously unenrolled workers receive matching contributions. Using cross-sectional variation in employer compensation costs and the automatic enrollment provision within firms sponsoring DC plans, we examine differences in compensation between those with and without the provision. A significant negative correlation exists between the generosity of the employer match structure and the automatic enrollment provision. However, we find no evidence that total compensation costs or DC costs differ between firms with and without automatic enrollment, and no evidence that DC costs crowd out other forms of compensation.
Subjects: 
automatic enrollment
defined contribution plan costs
employer match generosity
employee wage and non-wage compensation
firm behavior
JEL: 
J26
J31
J32
Document Type: 
Working Paper

Files in This Item:
File
Size
444.03 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.