Framing Effects in an Employee Savings Scheme: A Non-Parametric Analysis

44 Pages Posted: 2 Feb 2013

See all articles by Peter Kooreman

Peter Kooreman

Tilburg University - Center and Faculty of Economics and Business Administration; IZA Institute of Labor Economics

Bertrand Melenberg

Tilburg University - Center for Economic Research (CentER)

Henriette M. Prast

Tiburg University

Nathanael Vellekoop

Goethe University Frankfurt; Goethe University Frankfurt - Research Center SAFE; Netspar

Abstract

Studies have found evidence that seemingly irrelevant details of an income component such as its label have an effect on how it is used. Using a data set with more than one million employee-month observations, we investigate the role of functional form assumptions and time aggregation in the analysis of these effects. In most cases we find evidence that marginal propensities to save differ across income components. Our analysis reveals a large degree of heterogeneity in savings behavior within the year.

Keywords: framing effects, labeling effects, employee savings, nonparametric methods, behavioral economics

JEL Classification: D13, D91, G23

Suggested Citation

Kooreman, Peter and Melenberg, Bertrand and Prast, Henriette M. and Vellekoop, Nathanael, Framing Effects in an Employee Savings Scheme: A Non-Parametric Analysis. IZA Discussion Paper No. 7154. Available at SSRN: https://ssrn.com/abstract=2210794

Peter Kooreman (Contact Author)

Tilburg University - Center and Faculty of Economics and Business Administration ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

HOME PAGE: http://www.peterkooreman.nl

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Bertrand Melenberg

Tilburg University - Center for Economic Research (CentER) ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2730 (Phone)

Henriette M. Prast

Tiburg University ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Nathanael Vellekoop

Goethe University Frankfurt ( email )

Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

HOME PAGE: http://www.nvellekoop.nl

Goethe University Frankfurt - Research Center SAFE ( email )

(http://www.safe-frankfurt.de)
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

Netspar ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

HOME PAGE: http://www.nvellekoop.nl

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