The Impact of Individual Investment Behavior for Retirement Welfare: Evidence from the United States and Germany



Figure 6: Welfare Losses, ∆W0 / W0, for U.S. (SCF) Data; Gender = 0 (male),
γ = 2, δ = 0.97, Age = 50, Education = Low, Middle, or High *

Education =


A

B
BB

C

C
AC

AC

C
AAC
C
AA
BB


CA CA CA C
B B B AB


Net worth


Net worth


0    50,000 100,000 150,000 200,000

Net worth

Noncapital Income

B 20,000

A 36,000

C 49,000

* Dotted vertical lines indicate age-specific quantiles for Net worth (25%, 50% and 75%); age-specific
quantiles for Labor Income are labeled by
(25%), O (50%) and V (75%).

49



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