The long-term effects of employer-sponsored pension plans on non-workplace returns on investments / by Derek Messacar and René Morissette.: CS11-0019/2019-1E-PDF ; CS11-0019/413E-PDF
"What is the effect of having an employer-sponsored pension plan (EPP) on financial performance in non-workplace investments? This paper offers new insight into this unresolved empirical issue, using administrative data on over 345,000 taxfilers from Canada. The paper makes two key contributions. First, an approach for inferring relative returns on investments is developed. The approach is based on a longitudinal analysis of saving flow-of-funds and wealth data related to the use of the tax-free savings account (TFSA). The analysis shows that asset balances are substantially heterogeneous across individuals with equivalent saving histories. Second, having an EPP is shown to raise the average return on investment in other tax-preferred saving plans, albeit by a very modest amount of approximately 0.50% to 1.25% over five years since the TFSA was introduced. This result is robust to augmenting the analysis to an instrumental variables approach that exploits variation in the availability of EPPs across cohorts by sex and industry of employment, which controls for the possibility that observed and unobserved differences between individuals with and without EPPs—such as the level of education or financial literacy—may confound the results"--Abstract, p. 5.
Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.866229&sl=0
| Department/Agency | Statistics Canada. Analytical Studies Branch. |
|---|---|
| Title | The long-term effects of employer-sponsored pension plans on non-workplace returns on investments / by Derek Messacar and René Morissette. |
| Series title | Analytical Studies Branch research paper series, 1205-9153 ; no. 413 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Other language editions | [French] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "Release date: January 14, 2019." Issued also in French under title: Les effets à long terme des régimes de pension d’employeur sur le rendement des investissements hors du milieu de travail. Issued also in HTML format. The PDF copy has been replaced 04/02/2019 as requested by the publisher. Includes bibliographic references: p. 29-31. |
| Publishing information | [Ottawa] : Statistics Canada, c2019. |
| Author / Contributor | Messacar, Derek. Morissette, R. (René), 1959- |
| Description | 31 p. : col. charts |
| ISBN | 9780660290546 |
| Catalogue number |
|
| Departmental catalogue number | 11F0019M |
| Subject terms | Statistics Pensions Investments |
Request alternate formats
To request an alternate format of a publication, complete the Government of Canada Publications email form. Use the form’s “question or comment” field to specify the requested publication.- Date modified: