Workshop in Capital Markets: Vincenzo Andrietti

19 December 2014, h 12:00

“Auto-enrollment, Matching and Participation in 401(k) Plans”

by Vincenzo Andrietti (Università di Chieti e Pescara)


This study uses plan-level data from Form 5500s filed by plan sponsors annually with the Internal Revenue Service to analyze the effects of automatic enrollment and employer matching on 401(k) plan participation rates, and the effect of automatic enrollment on employer matching rates. The potential endogeneity of employer auto-enrollment/matching decisions is addressed exploiting the panel structure of the data. The results indicate that while both auto-enrollment and matching rates have a positive effect on plan participation rates, the effect of auto-enrollment is substantially higher. Moreover, auto-enrollment is found to have a positive and significant effect on match rates.