Office of Communications
470C Wohlers Hall
College of Business
February 6, 2002 -- News Brief
Research by Scott Weisbenner, assistant professor of finance, was cited in an editorial in the February 5, 2002, issue of the Wall Street Journal. Penned by R. Glenn Hubbard, chairman of President Bush's Council of Economic Advisors, the column addresses 401(k) reform. Hubbard notes that there is room for improvement but argues that pension reform should not come at the expense of "mistakenly discouraging wealth accumulation."
Weisbenner's research revealed that workers with 401(k)-type plans are more familiar with equity investments and also have more investments outside of their 401(k) plans. This knowledge of the market, says Hubbard, makes those investors "smarter about managing their money." Hubbard concludes that the president's reform proposals will provide needed worker protection while continuing to encourage employer-sponsored pension plans.
The Wall Street Journal article is only available to subscribers of the online news service.