Pensions in Labor Contracts
AbstractThis paper con siders the optimality of a two-period employment contract between a firm and a worker, in which the firm provides the employee with insurance against states of low consumption with a wage/pension payment schedule contingent upon the worker's productivity and state of employment. The paper shows that with endogenous quits and dismissals, the equilibrium pension plan could either impose vesting requirements or provide for severance pay depending on the relative perceptions of the probability of separation by the two parties, the worker's productivi ty in each state of employment, and the firm's policy regarding emplo yee retention. Copyright 1988 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.
Volume (Year): 29 (1988)
Issue (Month): 3 (August)
Contact details of provider:
Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Edward B. Montgomery & Kathryn Shaw & Mary Ellen Benedict, 1990.
"Pensions and Wages: An Hedonic Price Theory Approach,"
NBER Working Papers
3458, National Bureau of Economic Research, Inc.
- Montgomery, Edward & Shaw, Kathryn & Benedict, Mary Ellen, 1992. "Pensions and Wages: An Hedonic Price Theory Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(1), pages 111-28, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or ().
If references are entirely missing, you can add them using this form.