401(k) plans and employer stock
December 30, 2008
A look at the trend in 401(k) investment options over the past two decades shows a steady move away from employer stock as an investment vehicle.
BLS data provide some indication of the use of employer stock as a 401(k) investment vehicle. They indicate that workers' exposure to own-employer stock has declined substantially since 1985.
Among funds contributed by employers, a significant fraction of this decline was likely caused by the increased control of the funds given to workers, as shown in the chart. Since employer stock was more prevalent among employer-provided funds with no investment choice than among employer-provided funds in which employees chose investment allocation, the increasing fraction of funds having employee choice caused employer stock exposure to decline.
Another source of decline in workers' exposure to own-employer stock was that, within those plans allowing choice, there was a marked decline in the fraction allowing employer stock as a possibility. This trend applied to both employer- and employee-provided funds.
These data are from the BLS National Compensation Survey program. To learn more, see 401(k) plans move away from employer stock as investment vehicle, by William J. Wiatrowski, Monthly Labor Review, November 2008.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, 401(k) plans and employer stock on the Internet at https://www.bls.gov/opub/ted/2008/dec/wk5/art02.htm (visited December 12, 2017).
Recent editions of Spotlight on Statistics
Differences in Parents’ Time Use between the Summer and the School Year
A look at how parents of school-age children spend their time in the summer and the school year.
Hispanics in the United States: Celebrating National Hispanic Heritage Month
A look at employment, earnings, consumer spending, time use, and workplace injuries and illnesses for the Hispanic or Latino U.S. population.
Expenditures on Admissions to the Arts, Movies, Sporting Events, and Other Entertainment
A look at consumer spending and attendance at arts, sports, and entertainment events.
Profile of the Labor Force by Educational Attainment
A look at the educational attainment of the U.S. labor force and how it has changed over time.