Effects of Collectivism, Gender, and Nativity on Minority Consumers’ Retirement Savings

• In Event: 519 - Section on Race, Class and Gender Refereed Roundtable Session
  In Refereed Roundtable 100min: Table 06. Intersectionality and Inequality in the Life Course

Abstract

The present study documents and models the effects of collectivism, gender, and nativity on Latinas’ pension participation likelihood relative to non-Hispanic Whites. Multivariate regression methods were used to analyze data from the 2008 Survey of Income and Program Participation (SIPP) panel. Results indicate that only foreign-born Latinas were significantly less likely to participate in pension plans (defined contributions plans such as 401k and 403b) than non-Hispanic White Americans. Gender is not a barrier to Latinos saving for retirement. Our findings contradict the popular perception that Latinas, and Mexican women in particular, tend to be passive people and to defer to males in financial decision-making. Latinas are significantly more likely to participate in pension plans than Latino men, when controlling for collectivism, nativity and years of immigration, demographic, family needs and labor supply variables. Latino workers with a collectivist orientation are less likely to have a retirement account. Collectivism influences the behavior of Latino men as much as Latino women. This finding contradicts mainstream notions that women are naturally more collectivist than men. Our analysis shows that there is no gender difference in the effects of collectivism. Yet the negative effect of collectivism on participation in pension plans is plausible only when other covariates are not taken into consideration.

Author

• Sung David Chun, Mercy college of Ohio