401(k) plans and race

Abstract

The brief's key findings are: (1) Blacks and Hispanics are less likely to participate in 401(k)s and, when they do, they contribute at lower rates. (2) Even after controlling for age, job tenure, and earnings, these patterns persist. (3) However, adding education, wealth, and plan characteristics makes the differences disappear. (4) So the best way to boost saving among minorities is to ignore race and instead improve plan design for disadvantaged workers.