Pensions and household wealth accumulation

Gary V. Engelhardt, Anil Kumar

Research output: Contribution to journalArticlepeer-review

35 Scopus citations


Economists have long suggested that higher private pension benefits "crowd out" other sources of household wealth accumulation. We exploit detailed information on pensions and lifetime earnings for older workers in the 1992 wave of the Health and Retirement Study and employ an instrumental-variable (IV) identification strategy to estimate crowd-out. The IV estimates suggest statistically significant crowd-out: each dollar of pension wealth is associated with a 53-67 cent decline in nonpension wealth. With less precision, we use an instrumental-variable quantile regression estimator and find that most of the effect is concentrated in the upper quantiles of the wealth distribution.

Original languageEnglish (US)
Pages (from-to)203-236
Number of pages34
JournalJournal of Human Resources
Issue number1
StatePublished - Jan 2011

ASJC Scopus subject areas

  • Economics and Econometrics
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation


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