Kai Yuan Kuan
390 Serra Mall
Stanford, CA 94305-4065
Institutional Affiliation: Stanford University
NBER Working Papers and Publications
|February 2015||Racial Disparities in Savings Behavior for a Continuously Employed Cohort|
with Mark R. Cullen, Sepideh Modrek: w20937
The wealth gap has reached record highs. At the same time there has been substantial proliferation of 401(k) savings accounts as the dominant retirement savings vehicle, and these accounts make up an increasing proportion of overall wealth. In this paper we examine 401(k) saving behavior of continuously employed workers over an eight-year period at a single, geographically diverse employer. We demonstrate substantial difference in 401(k) savings behavior by employee ethnicity even within a single employer 401(k) plan architecture. We show both African American and Hispanic employees are less likely to participate in the 401(k) plans. Moreover, conditional on participation African Americans contribute a lower proportion of their income to their 401(k) plan on average. We also show that Afri...