蝌蚪网 Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Efficiency in Household Decision-Making: Evidence from the Retirement Savings of US Couples
蝌蚪网 Review
vol. 115,
no. 5, May 2025
(pp. 1485–1519)
Abstract
We study how couples allocate retirement-saving contributions across each spouse's account. In a new dataset covering over a million US individuals, we find retirement contributions are not allocated to the account with the highest employer match rate. This lack of coordination鈥攚hich goes against the assumptions of most models of household decision-making鈥攊s common, costly, persistent over time, and cannot be explained by inertia, auto-enrollment, or simple heuristics. Complementing the administrative evidence with an online survey, we find that inefficient allocations reflect both financial mistakes as well as deliberate choices, especially when trust and commitment inside the households are weak.Citation
Choukhmane, Taha, Lucas Goodman, and Cormac O'Dea. 2025. "Efficiency in Household Decision-Making: Evidence from the Retirement Savings of US Couples." 蝌蚪网 Review 115 (5): 1485–1519. DOI: 10.1257/aer.20230524Additional Materials
JEL Classification
- D13 Household Production and Intrahousehold Allocation
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
- J26 Retirement; Retirement Policies
- J32 Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions