Information, Preferences and Public Benet Participation: Experimental Evidence from the Advance EITC and 401(k) Savings
نویسندگان
چکیده
Within a eld experiment, I present a treatment group with reductions in information, administrative, stigma and procrastination costs associated with the Advance EITC. The treatment only increases Advance participation from 0.3 to 1.2 percent. Another treatment simultaneously encourages 401(k) savings, increasing 401(k) participation from 46 to 50 percent. However, there is no additional increase in Advance participation when coupled with the 401(k) treatment, casting doubt on a long-term forced savings motive. The results indicate that EITC recipients actively forgo the Advance. Further work is needed to identify what underlies these preferences. Possible explanations include uncertainty and/or short-term forced savings motives. JEL: H00, H24, H30
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