title: The Effect of Providing Peer Information on Retirement Savings Decisions.
abstract: Using a field experiment in a 401(k) plan, we measure the effect of disseminating information about peer behavior on savings. Low-saving employees received simplified plan enrollment or contribution increase forms. A randomized subset of forms stated the fraction of age-matched coworkers participating in the plan or age-matched participants contributing at least 6% of pay to the plan. We document an oppositional reaction: the presence of peer informationdecreasedthe savings of nonparticipants who were ineligible for 401(k) automatic enrollment, and higher observed peer savings rates also decreased savings. Discouragement from upward social comparisons seems to drive this reaction.
authors.affiliation: Harvard University and NBER, Yale University and NBER, Harvard University and NBER, Harvard University and NBER, and University of Pennsylvania.
authors.forename: John
authors.initials: J
authors.lastname: Beshears
authors.affiliation: Harvard University and NBER, Yale University and NBER, Harvard University and NBER, Harvard University and NBER, and University of Pennsylvania.
authors.forename: James J
authors.initials: JJ
authors.lastname: Choi
authors.affiliation: Harvard University and NBER, Yale University and NBER, Harvard University and NBER, Harvard University and NBER, and University of Pennsylvania.
authors.forename: David
authors.initials: D
authors.lastname: Laibson
authors.affiliation: Harvard University and NBER, Yale University and NBER, Harvard University and NBER, Harvard University and NBER, and University of Pennsylvania.
authors.forename: Brigitte C
authors.initials: BC
authors.lastname: Madrian
authors.affiliation: Harvard University and NBER, Yale University and NBER, Harvard University and NBER, Harvard University and NBER, and University of Pennsylvania.
authors.forename: Katherine L
authors.initials: KL
authors.lastname: Milkman