Sink-or-Swim Retirement Plans



People’s exposure to both labor and financial market risks has increased since the 1980s, while labor and financial markets have also become more unstable. The combination of growing risk exposure and rising risks has contributed to increasing wealth inequality, as households with high risk exposure have experienced lower wealth gains over time than households without high risk exposure. In this chapter, I focus on some of the mechanics of rising financial risk exposure with individualized savings, such as retirement savings accounts and housing.


Housing Market Risk Exposure Retirement Plan Retirement Saving Define Contribution 
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    For a review of the relevant literature, see Stefano DellaVigna, “Psychology and Economics: Evidence from the Field,” Journal of Economic Literature 47, no. 2 (June 2009), 315–372;CrossRefGoogle Scholar
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© Christian E. Weller 2016

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