PT  - JOURNAL ARTICLE
AU  - Gary V. Engelhardt
AU  - Anil Kumar
TI  - Pensions and Household Wealth Accumulation
AID  - 10.3368/jhr.46.1.203
DP  - 2011 Jan 01
TA  - Journal of Human Resources
PG  - 203--236
VI  - 46
IP  - 1
4099  - http://jhr.uwpress.org/content/46/1/203.short
4100  - http://jhr.uwpress.org/content/46/1/203.full
SO  - J Hum Resour2011 Jan 01; 46
AB  - 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.