eprintid: 3749
rev_number: 12
eprint_status: archive
userid: 150
dir: disk0/00/00/37/49
datestamp: 2007-07-03 12:00:00
lastmod: 2015-07-23 09:33:34
status_changed: 2008-01-09 13:49:37
type: working_paper
metadata_visibility: show
item_issues_count: 0
creators_name: Attanasio, O.
creators_name: Rohwedder, S.
creators_id: OPATT42
creators_id: 
title: Pension wealth and household saving: evidence from pension reforms in the UK
ispublished: pub
subjects: 12055
subjects: 12000
divisions: F24
keywords: JEL classification: H55, H91. Pension wealth, pension reform, household savings, life-cycle model
abstract: Using three major UK pension reforms as natural experiments we investigate the relationship
between pension saving and discretionary private savings. Unlike most differences-in-differences
approaches which rely on average differences between the control and the treatment group, we
use economic theory to model the response of each individual household. The model permits us
to use both time-series and cross-sectional variation in a consistent way to identify the
behavioural response. The study is based on data from the Family Expenditure Survey. A
measure of pension wealth is not observed, but we estimate it by applying the rules of the
pension system to observed individual characteristics. The changes in pension wealth as a result
of the reforms are substantial. The empirical analysis suggests that the earnings-related tier of the
pension scheme has a negative impact on private savings with substitution elasticities
approaching –1.0. The impact of the flat-rate tier of the scheme is found not to be significantly
different from zero.
date: 2001-09
date_type: published
publisher: Institute for Fiscal Studies
official_url: http://dx.doi.org/10.1920/wp.ifs.2001.0121
vfaculties: VSHS
oa_status: green
language: eng
primo: open
primo_central: open_green
lyricists_name: Attanasio, O
lyricists_id: OPATT42
full_text_status: public
series: IFS Working Papers
number: W01/21
place_of_pub: London, UK
issn: 1742-0415
citation:        Attanasio, O.;    Rohwedder, S.;      (2001)    Pension wealth and household saving: evidence from pension reforms in the UK.                    (IFS Working Papers  W01/21). Institute for Fiscal Studies: London, UK.       Green open access   
 
document_url: https://discovery-pp.ucl.ac.uk/id/eprint/3749/1/3749.pdf