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Employer size and labor turnover: The role of pensions

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Author Info
William E. Even
David A. Macpherson

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Abstract

The well-documented lower labor turnover in large firms than in smaller firms has been cited as evidence that large firms pay workers above their opportunity wage. This study investigates whether the relationship between firm size and turnover can instead be accounted for in part by size-related differences in the availability, portability, or generosity of pension plans. Analyzing extensive data for the years 1973-93, the authors find that pension coverage was associated with a greater reduction in worker turnover in large firms than in small firms. They also find that when appropriate controls for worker characteristics are employed, there is virtually no association between firm size and labor turnover for workers not covered by a pension. (Abstract courtesy JSTOR.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 49 (1996)
Issue (Month): 4 (July)
Pages: 707-728
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Handle: RePEc:ilr:articl:v:49:y:1996:i:4:p:707-728

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  1. Tuuli Juurikkala & Olga Lazareva, 2006. "Non-wage benefits, costs of turnover, and labor attachment: evidence from Russian firms," Working Papers w0062, Center for Economic and Financial Research (CEFIR). [Downloadable!]
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  2. Drolet, Marie & Morissette, René, 1998. "Recent Canadian Evidence on Job Quality by Firm Size," Analytical Studies Branch Research Paper Series 1998128e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  3. Leora Friedberg & Michael Owyang, 2004. "Explaining the Evolution of Pension Structure and Job Tenure," NBER Working Papers 10714, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. repec:ese:iserwp: is not listed on IDEAS
  5. Erwan Quintin & John J. Stevens, 2003. "Firm specific human capital vs. job matching: a new test," Finance and Economics Discussion Series 2003-33, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  6. Hvide, Hans K. & Kristiansen, Eirik G., 2006. "Management of Knowledge Workers," Discussion Papers 2006/7, Department of Finance and Management Science, Norwegian School of Economics and Business Administration. [Downloadable!]
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  7. Robert L. Clark & Joseph F. Quinn, 1999. "Effects of Pensions on Labor Markets and Retirement," Boston College Working Papers in Economics 431, Boston College Department of Economics. [Downloadable!]
  8. Andrietti, Vincenzo, 2000. "Portability of Supplementary Pension Rights in the European Union," IRISS Working Paper Series 2000-01, IRISS at CEPS/INSTEAD. [Downloadable!]
  9. Riphahn, Regina T., 1998. "Income and Employment Effects of Health Shocks - A Test Case for the German Welfare State," IZA Discussion Papers 10, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  10. Teresa Ghilarducci & Michael Reich, 1998. "Training and Pensions: Substitutes or Complements?," Institute for Research on Labor and Employment, Working Paper Series 1002, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
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