Saving Incentives for Low- and Middle-Income Families: Why is the Saver's Credit Not More Effective?
Journal of the European Economic Association, Vol. 5, Nos. 2-3, pp. 647-661, April-May 2007
15 Pages Posted: 4 Feb 2011
Date Written: 2007
This paper uses data from the largest tax preparer in the United States to estimate the impact of the "saver’s credit," aUSfederal program providing financial incentives to encourage retirement savings, on the decision to contribute to an IRA. It finds significant, but very modest, effects. This is contrasted with results from a field experiment showing much larger impacts of clearly presented matching incentives. Various explanations are discussed for why the saver’s credit is not more effective.
Keywords: Saver's Credit
JEL Classification: H00, H31, C93, D14
Suggested Citation: Suggested Citation