NUDGING LIFE INSURANCE HOLDINGS IN THE WORKPLACE

Timothy F. Harris, Aaron Yelowitz

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

Using data from a university, we analyze a policy designed to increase employer-sponsored life insurance. The university increased basic life insurance holdings, which nudged employees with supplemental coverage to have more life insurance. In large part due to inertia, the nudge increased life insurance holdings one-for-one for those who could have undone it. Additionally, we find that expanding coverage options significantly increased total life insurance holdings for new hires who were not subject to inertia. These policy changes reduced uninsured vulnerabilities for two-thirds of employees. Our findings have important policy implications for addressing widespread disparities in life insurance coverage. (JEL D31, G22, D03, J32, J33, J38, H20).

Original languageEnglish
Pages (from-to)951-981
Number of pages31
JournalEconomic Inquiry
Volume55
Issue number2
DOIs
StatePublished - Apr 1 2017

Bibliographical note

Publisher Copyright:
© 2016 Western Economic Association International

ASJC Scopus subject areas

  • General Business, Management and Accounting
  • Economics and Econometrics

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