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

Finke, Michael S. and Chatterjee, Swarn, Social Security: Who Wants Private Accounts? (October 9, 2008). Available at SSRN: or

Michael S. Finke (Contact Author)

The American College ( email )

Bryn Mawr, PA 19010
United States

Swarn Chatterjee

University of Georgia ( email )

Athens, GA 30602-3622
United States

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