The Evolution of Pension Coverage of Young and Older Workers in Canada

Statistics Canada Analytical Working Paper No. 99-138

75 Pages Posted: 4 Jan 2000

See all articles by Rene Morissette

Rene Morissette

Government of Canada - Business & Labour Market Analysis Division

Date Written: December 22, 1999

Abstract

In this paper, we assemble data from several household surveys to document how pension coverage of young and older workers has evolved in Canada between the mid-1980s and the mid-1990s. Our main findings are the following. First, both administrative data from the Pension Plans in Canada (PPIC) database and data from household surveys show an increase in RPP coverage for women. In contrast, while PPIC data show a decrease in coverage for men, household surveys indicate no downward trend for males. Second, sample aggregates hide interesting differences within the population. We find that the pension coverage of young workers (aged 25-34) has declined relative to older workers (aged 35-54). Young males have experienced a decline in coverage while RPP coverage has remained fairly stable for older men. In contrast, pension coverage has remained fairly constant for young women but has risen substantially for older women. Third, the decline in unionism and shifts towards industries with low-coverage explain most of the decrease in coverage observed among young men. Fourth, the growth in older women's coverage appears to be the result of their greater propensity to be employed in highly paid/highly covered occupations.

JEL Classification: J33

Suggested Citation

Morissette, Rene, The Evolution of Pension Coverage of Young and Older Workers in Canada (December 22, 1999). Statistics Canada Analytical Working Paper No. 99-138, Available at SSRN: https://ssrn.com/abstract=202231 or http://dx.doi.org/10.2139/ssrn.202231

Rene Morissette (Contact Author)

Government of Canada - Business & Labour Market Analysis Division ( email )

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