Research Article


DOI :10.26650/ISTJECON2023-1360545   IUP :10.26650/ISTJECON2023-1360545    Full Text (PDF)

Exploring the Impact of Behavioural Factors and Personality Traits on Private Pension System Participation: A Machine Learning Approach

Can VerberiMuhittin Kaplan

This study aims to investigate the effects of personality traits, in addition to basic financial literacy, private pension literacy and behavioural factors on Private Pension System (PPS) participation using machine learning algorithms. The PPS participation model was trained using both random forest and LightGBM algorithms, and the contributions of model inputs in the prediction of pension participation were interpreted using the Tree SHAP algorithms with swarmplots. The data employed in the empirical analysis is survey data collected from the Şırnak province of Türkiye with a sample size of 449. The findings of the study shows that: (i) PPS participation is more likely for females and middle-aged people; (ii) High basic financial literacy has a negative impact on PPS participation; (iii) Extraversion is the key personality trait affecting PPS participation; (iv) Advanced pension literacy has more impact on participation than simple pension literacy: (v) Present-fatalistic tendency is key behavioural factor and it negatively affects PPS; (vi) Present-hedonistic, conscientiousness, future-time orientation, and locus of control tendencies increase PPS participation. Furthermore, the distribution of colours in LightGBM has a greater degree of uniformity in both directions compared with the random forest algorithm. Finally, to increase PPS participation, the results of the study suggest the implementation of the following policy measures: Tailored pension literacy programmes can help to increase pension participation rates. Incentives should be created to prevent narrow-minded behaviour and establish a sense of protection and control around PPS, targeting middle-aged individuals and women.  

JEL Classification : C60 , G41 , J32

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APA

Verberi, C., & Kaplan, M. (2024). Exploring the Impact of Behavioural Factors and Personality Traits on Private Pension System Participation: A Machine Learning Approach. Istanbul Journal of Economics, 74(1), 281-314. https://doi.org/10.26650/ISTJECON2023-1360545


AMA

Verberi C, Kaplan M. Exploring the Impact of Behavioural Factors and Personality Traits on Private Pension System Participation: A Machine Learning Approach. Istanbul Journal of Economics. 2024;74(1):281-314. https://doi.org/10.26650/ISTJECON2023-1360545


ABNT

Verberi, C.; Kaplan, M. Exploring the Impact of Behavioural Factors and Personality Traits on Private Pension System Participation: A Machine Learning Approach. Istanbul Journal of Economics, [Publisher Location], v. 74, n. 1, p. 281-314, 2024.


Chicago: Author-Date Style

Verberi, Can, and Muhittin Kaplan. 2024. “Exploring the Impact of Behavioural Factors and Personality Traits on Private Pension System Participation: A Machine Learning Approach.” Istanbul Journal of Economics 74, no. 1: 281-314. https://doi.org/10.26650/ISTJECON2023-1360545


Chicago: Humanities Style

Verberi, Can, and Muhittin Kaplan. Exploring the Impact of Behavioural Factors and Personality Traits on Private Pension System Participation: A Machine Learning Approach.” Istanbul Journal of Economics 74, no. 1 (Oct. 2024): 281-314. https://doi.org/10.26650/ISTJECON2023-1360545


Harvard: Australian Style

Verberi, C & Kaplan, M 2024, 'Exploring the Impact of Behavioural Factors and Personality Traits on Private Pension System Participation: A Machine Learning Approach', Istanbul Journal of Economics, vol. 74, no. 1, pp. 281-314, viewed 11 Oct. 2024, https://doi.org/10.26650/ISTJECON2023-1360545


Harvard: Author-Date Style

Verberi, C. and Kaplan, M. (2024) ‘Exploring the Impact of Behavioural Factors and Personality Traits on Private Pension System Participation: A Machine Learning Approach’, Istanbul Journal of Economics, 74(1), pp. 281-314. https://doi.org/10.26650/ISTJECON2023-1360545 (11 Oct. 2024).


MLA

Verberi, Can, and Muhittin Kaplan. Exploring the Impact of Behavioural Factors and Personality Traits on Private Pension System Participation: A Machine Learning Approach.” Istanbul Journal of Economics, vol. 74, no. 1, 2024, pp. 281-314. [Database Container], https://doi.org/10.26650/ISTJECON2023-1360545


Vancouver

Verberi C, Kaplan M. Exploring the Impact of Behavioural Factors and Personality Traits on Private Pension System Participation: A Machine Learning Approach. Istanbul Journal of Economics [Internet]. 11 Oct. 2024 [cited 11 Oct. 2024];74(1):281-314. Available from: https://doi.org/10.26650/ISTJECON2023-1360545 doi: 10.26650/ISTJECON2023-1360545


ISNAD

Verberi, Can - Kaplan, Muhittin. Exploring the Impact of Behavioural Factors and Personality Traits on Private Pension System Participation: A Machine Learning Approach”. Istanbul Journal of Economics 74/1 (Oct. 2024): 281-314. https://doi.org/10.26650/ISTJECON2023-1360545



TIMELINE


Submitted20.09.2023
Accepted22.04.2024
Published Online19.07.2024

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