Date of Award

Spring 5-3-2024

Document Type

Thesis

Degree Name

Master of Arts (MA)

Department

Economics

First Advisor

PARTHA DEB

Second Advisor

KENNETH MCLAUGHLIN

Academic Program Adviser

KARNA BASU

Abstract

The objective of the Pension Protection Act of 2006 is to protect pension plans, reinforce individual savings and prepare Americans for retirement. A provision of the act strengthens the 1998-2000 IRS ruling that allows firms to automatically enroll their employees in 401(k) plans by superseding state written permission requirements. Prior to the Pension Protection Act of 2006, several states required written permission from employees to authorize wage deductions and 401(k) enrollments. Single-event difference-in-difference regressions estimate the effects of the Pension Protection Act of 2006’s auto-enrollment provision on labor market outcomes in states that had written permission requirements in the years preceding 2008. The analysis shows that older Americans living in states that previously required written permission work more, retire less, and earn more.

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