Low Pension Participation among Minority Workers in the U.S.

Abstract

The present study documents and models Latinos’ pension participation likelihood relative to non-Hispanic Whites and non-Hispanic Blacks. Multivariate regression methods were used to analyze data from the 1996 Survey of Income and Program Participation (SIPP) panel which was collected from April 1996 to March 2000. Results indicate that Hispanics and non-Hispanic Blacks were significantly less likely to participate in pension plans (defined contributions plans such as 401k and 403b) than non-Hispanic White Americans. In multivariate analyses where demographic background, industry and occupation characteristics, availability of affordable pension plans, and eligibility statuses were specified, there was still a significant net racial effect in predicting the DC pension participation likelihood.