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Money on the table: Some evidence on the role of liquidity constraints in 401(k) saving
Journal article   Peer reviewed

Money on the table: Some evidence on the role of liquidity constraints in 401(k) saving

Gary V. Engelhardt and Anil Kumar
Economics letters, Vol.99(2), pp.402-404
05/01/2008
DOI: 10.1016/j.econlet.2007.09.005

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Abstract

Using Health and Retirement Study data on contributions, earnings, and pension plans, we examine the role of liquidity constraints in explaining why employees fail to take full advantage of employer matching contributions in 401(k) plans, leaving “money on the table.”
401(k)s Liquidity constraints Saving

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