Pensions, Efficiency Wages, and Job Mobility

41 Pages Posted: 23 Aug 2000 Last revised: 22 Aug 2010

See all articles by Alan L. Gustman

Alan L. Gustman

Dartmouth College - Department of Economics; National Bureau of Economic Research (NBER)

Thomas L. Steinmeier

Texas Tech University - Department of Economics and Geography

Date Written: November 1987

Abstract

This paper finds that compensation premia and not pension backloading are responsible for the low mobility rates from jobs with pensions. Compensation premia, which may represent efficiency wages, are calculated as the difference in compensation between the current job and the best alternative job, allowing for the fact that such premia are observed only for job changers. The amount of pension backloading is calculated from data provided by employers to the Survey of Consumer Finances, greatly improving the precision of measurement over past efforts. This finding has important implications for labor market analysis and for policies concerning pension regulation.

Suggested Citation

Gustman, Alan L. and Steinmeier, Thomas L., Pensions, Efficiency Wages, and Job Mobility (November 1987). NBER Working Paper No. w2426, Available at SSRN: https://ssrn.com/abstract=228018

Alan L. Gustman (Contact Author)

Dartmouth College - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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Thomas L. Steinmeier

Texas Tech University - Department of Economics and Geography ( email )

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United States
806-742-2201 (Phone)

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