Work

Pension portability and labor mobility

Year: 1993

Type: article

Abstract: The evidence presented in this paper casts doubt on the proposition that pension backloading is responsible for the low job mobility rates observed for pension covered workers. It corroborates earlier findings by the authors, based on different data, that pension covered jobs offer higher levels of compensation than workers can obtain elsewhere, and it is this compensation premium, rather than non-portability, that accounts for lower turnover among pension covered workers. This evidence is further bolstered by the finding that defined contribution plans, which are not backloaded, and defined benefit plans, bear similar negative relations to mobility.

Source: Journal of Public Economics

DOI: 10.1016/0047-2727(93)90089-c

Authors: Alan L. Gustman, Thomas L. Steinmeier

Institutions: Dartmouth College, National Bureau of Economic Research, Texas Tech University

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $4,510