Thursday, July 10, 2014

Upcoming event: "Boosting Economic Mobility through Prize-Linked Savings"

Join us for lunch at ICI on Tuesday, July 22 for a discussion with Stuart Butler and David C. John on their paper "Boosting Economic Mobility through Prize-Linked Savings"

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Stuart Butler
Distinguished Fellow and Director, Center for Policy Innovation
The Heritage Foundation

David C. John
Senior Strategic Policy Advisor
AARP Public Policy Institute

"Boosting Economic Mobility through
Prize-Linked Savings"

Stuart Butler and David C. John
Tuesday, July 22 from Noon to 1:00 at

Investment Company Institute
1401 HStreet, NW
Suite 1200
Washington, DC 20005


(Lunch will be provided)

The savings rate in America has been in decline for three decades, with roughly one-third of households having no savings at all. Analyses of economic mobility explore why some people are successful in moving up the economic ladder during their lifetime while others are not. While there is much debate about the degree of opportunity in America, there is general agreement that there seem to be significant obstacles facing Americans who start out in households at the bottom end of the income spectrum. But even for those starting at the bottom, lifetime trajectories vary widely. The habit of saving is a critically important complement to education and social “capital” needed for upward mobility. But we need to recognize that there are many Americans who are not inclined to take part in traditional programs designed to build a savings habit. For these Americans, financial incentives and tools with approaches that have a more emotional appeal are a more effective way of creating a culture of savings by channeling the instinct to gamble into systematic savings. This approach, known as “prize-linked savings” employs the techniques of behavioral economics to turn a behavior pattern into a savings habit that enhances the economic mobility of a household.





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