Labour Mobility, Pension Portability and the Lack of Lock-In Effects

34 Pages Posted: 27 Mar 2011  

Erik Hernæs

University of Oslo - Ragnar Frisch Centre for Economic Research

John Piggott

University of New South Wales (UNSW) - Australian School of Business, School of Economics

Ola Lotherington Vestad

Statistics Norway - Research Department; University of Chicago - Department of Economics

Tao Zhang

Ragnar Frisch Centre for Economic Research

Abstract

This paper revisits the question of whether defined benefit pension plans inhibit labour mobility. Using national register data for three distinct 3 year periods, we define and calculate a measure of changes in individual pension entitlements which we term potential portability gain. Estimation results indicate that the effect of portability gains on the propensity to change jobs is either weak or non-existent, and there are no signs of gains or losses in pension entitlements being reflected in wages for job changers. We conclude that potential portability gains or losses in occupational pensions are of negligible importance for labour market mobility.

Keywords: labour market mobility, defined benefit occupational pensions, matched employer-employee register data

JEL Classification: J26, J33, J62

Suggested Citation

Hernæs, Erik and Piggott, John and Vestad, Ola Lotherington and Zhang, Tao, Labour Mobility, Pension Portability and the Lack of Lock-In Effects. UNSW Australian School of Business Research Paper No. 2011 AIPAR 01. Available at SSRN: https://ssrn.com/abstract=1791429 or http://dx.doi.org/10.2139/ssrn.1791429

Erik Hernæs (Contact Author)

University of Oslo - Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0317 Oslo
Norway

John Piggott

University of New South Wales (UNSW) - Australian School of Business, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia

Ola Lotherington Vestad

Statistics Norway - Research Department ( email )

Kongens Gt. 6
PO Box 8131 Dep
N-0033 Oslo
Norway

University of Chicago - Department of Economics ( email )

1126 E. 59th St
Chicago, IL 60637
United States

Tao Zhang

Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0349 Oslo
Norway
+47-22958816 (Phone)
+47-22958825 (Fax)

Paper statistics

Downloads
123
Rank
189,222
Abstract Views
1,025