Information Framing and Retirement Management Decisions: Evidence from a Field Experiment in Mexico

39 Pages Posted: 4 Mar 2011 Last revised: 7 Oct 2013

See all articles by Gabriel Lara Ibarra

Gabriel Lara Ibarra

The World Bank - Poverty and Equity Global Practice

Date Written: December 3, 2010

Abstract

I analyze whether information framing related to the performance of Pension Funds Administrators affects the retirement management decisions of Mexican workers. I conduct a survey to collect information on recommendations for Fund Administrator made by Mexican workers when faced with randomly framed scenarios. The scenarios feature framing based on choice avoidance and framing exploiting loss aversion. I find evidence that reducing the number of possible choices increases the probability that individuals choose a Fund Administrator with a higher net return or with lower fees. A "loss aversion" framing increases the probability that individuals choose a Fund Administrator with a higher net return. Finally, I find evidence that higher levels of financial literacy decrease the effects of framing on Fund Administrator choice.

Keywords: Framing, Mexico, Retirement

JEL Classification: J26, C93

Suggested Citation

Lara Ibarra, Gabriel, Information Framing and Retirement Management Decisions: Evidence from a Field Experiment in Mexico (December 3, 2010). Available at SSRN: https://ssrn.com/abstract=1776162 or http://dx.doi.org/10.2139/ssrn.1776162

Gabriel Lara Ibarra (Contact Author)

The World Bank - Poverty and Equity Global Practice ( email )

1818 H St NW
Washington, DC 20433
United States

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