| Abstract: |
We conduct a stated-choice experiment to analyze the decision to contribute to
front- or back-loaded tax-sheltered savings accounts. Our experimental design
includes a randomized financial education treatment that provides information
on the two types of accounts. We assess whether respondents learn about the
tax implications of these accounts, and whether they make better contribution
choices when exposed to the financial education intervention. We find that,
relative to a control group, our intervention improves both the understanding
of the tax implications of the savings accounts (an increase of 6 to 15 points
on a score of 100) and the quality of contribution decisions, improving the
well-being of respondents by about 140$ in each scenario presented to them. |