Working Papers
Retention or Regressivity? The Empirical Effects of 401(k) Vesting Schedules, with Aaron Goodman, October 2025, Revise and Resubmit, Journal of Finance
Vesting requirements are a common yet understudied feature of defined-contribution retirement plans. Using administrative recordkeeping data, we find that 30% of separations occur during participants’ vesting periods. The resulting forfeitures of employer contributions are concentrated among lower-income participants and make the distribution of 401(k) compensation significantly more regressive. Firms do not enjoy offsetting efficiency benefits: employing both cross-plan and within-plan identification strategies, we find no evidence that vesting exerts a causal retention effect. A linked survey shows informational frictions to be a key mechanism, as a majority of respondents do not know their current plan’s vesting rules.
Presented at: NBER Aging Spring 2025, WFA 2025, NBER SI Household Finance 2025, NBER Labor Spring 2026
The Design of Retirement Plan Match Schedules, with Taha Choukhmane, Fiona Greig, Cormac O’Dea, and Lawrence Schmidt, March 2026
We use survey responses to hypothetical scenarios linked with administrative 401(k) data to investigate the efficiency and equity implications of employer 401(k) match formulas. We find that (i) survey responses can be used to accurately predict saving responses to both observed and hypothetical plans, (ii) saving is inelastic to the match rate, (iii) non-elective contributions do not crowd out saving. These patterns imply that (iv) plans combining lower match rates with non-elective contributions generate higher savings and more equitable match distributions, and (v) many existing plans—including safe-harbor formulas—are strictly dominated along both dimensions.
Presented at: NBER Public Spring 2026
Work in Progress
Who Bears the Risk? Earnings Shocks and Consumption Inside the Household, with Jin Cao
Elite Social Status and Protection Against Economic Risk, with Florian Caro, Valerie Michelman, and Seth Zimmerman
Policy Reports
Does 401(k) vesting help retain workers?, with Aaron Goodman, Febraury 2025
Are Employers Optimizing Their 401(K) Match?, with Fiona Greig, Anna Madamba, Cormac O’Dea, Taha Choukhmane, and Lawrence Schmidt, May 2024