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Incorporating Employee Heterogeneity into Default Rules for Retirement Plan Selection
Incorporating Employee Heterogeneity Default Rules Retirement Plan Selection
2016/3/9
We study the effect of incorporating heterogeneity into default rules by examining the choice between retirement plans at a firm that transitioned from a defined benefit (DB) to a defined contribution...
Defined benefit pension plans have become considerably less common since the early 1980s, while defined contribution plans have spread. Previous research showed that defined benefit plans, with sharp ...