Social Security: Who Wants Private Accounts?
31 Pages Posted: 13 Oct 2008
Date Written: October 9, 2008
Preference for partial privatization of social security is explored using a 2004 sample of 7,565 young baby boomers. Two-thirds of the sample would choose partial privatization. While a greater proportion of higher-income, wealthier, and more educated respondents preferred private accounts, multivariate analysis reveals that intelligence has a stronger effect than socio-economic variables. An average of 43% would be invested in equities, but a surprising 35% would be invested in government bonds. Men and those with higher intelligence are more likely to prefer equities, while women prefer corporate bonds and the less educated, blacks, and respondents with children preferred government bonds.
Keywords: social security, portfolio choice, private accounts, privatization
JEL Classification: H55
Suggested Citation: Suggested Citation