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How Has Public Policy Shaped Defined-Benefit Pension Coverage in Canada?

Author

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  • ANDREW A. LUCHAK
  • TONY FANG
  • MORLEY GUNDERSON

Abstract

Unlike federal regulation in the United States, variation in provincial regulation across Canada provides a natural laboratory to examine the impact of public policy on pension coverage. Using data from a nationally representative sample of private sector workers in Canada in 1994, we find that higher marginal taxes, earlier vesting, and more permissive eligibility rules increase coverage, while a ban on mandatory retirement has a negative, but insignificant effect. Implications for differences in defined-benefit coverage between Canada and the United States, and pension theory, research, and practice are discussed.

Suggested Citation

  • Andrew A. Luchak & Tony Fang & Morley Gunderson, 2004. "How Has Public Policy Shaped Defined-Benefit Pension Coverage in Canada?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 469-484, July.
  • Handle: RePEc:tra:jlabre:v:25:y:2004:i:3:p:469-484
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    Cited by:

    1. Adeabah, David & Asongu, Simplice & Andoh, Charles, 2021. "Remittances, ICT and pension income coverage: The international evidence," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    2. Derek Messacar, 2018. "The Effects of Vesting and Locking in Pension Assets on Participation in Employer-Sponsored Pension Plans," Journal of Labor Research, Springer, vol. 39(2), pages 178-200, June.
    3. Fang, Tony & Messacar, Derek, 2019. "Voluntary Job Separations and Traditional versus Flexible Workplace Saving Plans: Evidence from Canada," IZA Discussion Papers 12262, Institute of Labor Economics (IZA).

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