Survey evidence on employer match rates and employee saving behavior in 401(k) plans

We examine the relationship between employer match rates in 401 (k) plans and employee saving behavior in these plans. Our analysis is based on a recent survey of 401 (k) plan sponsors. Participation rates are positively related to the match rate. Employee contributions appear to be sensitive to the match rate at low matches, but our sample is too small to identify precisely the effect of higher match rates.