The persistence of default effects among low income individuals


John Beshears, James Choi, David Laibson, and Brigitte Madrian


This project proposes to study the impact of auto-enrollment in 401(k) plans across different types of households. We hypothesize that low income households will be more influenced by auto-enrollment. A growing body of evidence suggests that low financial literacy and behavioral biases are more prevalent among low income households, which would cause these households to be more easily influenced by both good and bad defaults.


Beshears, John, James Choi, David Laibson, and Brigitte Madrian. “Persistence at the Default Among Low-Income Individuals.” 2012.