Saving Incentives for Low- and Middle-Income Families: Evidence from a Field Experiment with H&R Block

S-Tier
Journal: Quarterly Journal of Economics
Year: 2006
Volume: 121
Issue: 4
Pages: 1311-1346

Score contribution per author:

1.609 = (α=2.01 / 5 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze a randomized experiment in which 14,000 tax filers in H&R Block offices in St. Louis received matches of zero, 20 percent, or 50 percent of IRA contributions. Take-up rates were 3 percent, 8 percent, and 14 percent, respectively. Among contributors, contributions, excluding the match, averaged $765 in the control group and $1100 in the match groups. Taxpayer responses to similar incentives in the Saver's Credit are much smaller. Taxpayers did not game the experiment by receiving a match and strategically withdrawing funds. Tax professionals significantly influenced contribution choices. These results suggest that both incentives and information affect behavior.

Technical Details

RePEc Handle
repec:oup:qjecon:v:121:y:2006:i:4:p:1311-1346.
Journal Field
General
Author Count
5
Added to Database
2026-01-25