Pensions and Wages: An Hedonic Price Theory Approach

35 Pages Posted: 24 Jan 2006

See all articles by Edward B. Montgomery

Edward B. Montgomery

University of Maryland; National Bureau of Economic Research (NBER)

Kathryn L. Shaw

Stanford Graduate School of Business; National Bureau of Economic Research (NBER)

Mary Ellen Benedict

Bowling Green State University - Economics

Date Written: October 1990

Abstract

This paper examines whether a tradeoff exists between the level of pension benefits and wages for comparably skilled workers. The 1983 survey of Consumer Finances is used to match detailed information on pension plans to detailed personal characteristics of a random sample of the population. The pension wage tradeoff is estimated using both a life-tine or contractual model of the labor market and the spot market model used in previous studies. The results indicate a large negative tradeoff in the contractual model but only a negligible tradeoff in the spot market model. Results from estimating the underlying structural supply and demand equation for pensions are also presented.

Suggested Citation

Montgomery, Edward B. and Shaw, Kathryn L. and Benedict, Mary Ellen, Pensions and Wages: An Hedonic Price Theory Approach (October 1990). NBER Working Paper No. w3458. Available at SSRN: https://ssrn.com/abstract=473920

Edward B. Montgomery (Contact Author)

University of Maryland ( email )

Department of Economics
College Park, MD 20742
United States
301-405-3498 (Phone)
301-405-3542 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Kathryn L. Shaw

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Mary Ellen Benedict

Bowling Green State University - Economics ( email )

Bowling Green, OH 43403
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
21
Abstract Views
540
PlumX Metrics