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Survivor's Pension Rights and Wages

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Author Info

  • Selén, Jan

    (Trade Union Institute for Economic Research (FIEF))

  • Ståhlberg, Ann-Charlotte

    ()
    (Swedish Institute for Social Research, Stockholm University)

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    Abstract

    Wages are not only money wages. For an employee, the wage consists of all the benefits that he or she is entitled to as a result of employment. His or her total remuneration for work is composed of money wages plus non-wage benefits such as earnings-related or employment-related insurance rights. In Europe, earnings-related insurance mainly takes the form of public and negotiated collective systems. Hence the individual value is hard to observe. This article is an original attempt to determine the individual value of certain public and negotiated insurance rights. A money value for earnings-related survivors' pension rights is estimated and added to the money wage to create an extended wage measure. We use Swedish micro data to analyse what the inclusion of different insurance rights might mean for wage differentials and wage dispersion. The study indicates that wage inequality is understated when non-wage benefits in the form of survivors' pension rights are excluded from the compensation measure and that a more complete picture of wage differentials is obtained when these rights are accounted for.

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    Bibliographic Info

    Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number 5/2000.

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    Length: 22 pages
    Date of creation: 15 Jun 2000
    Date of revision:
    Handle: RePEc:hhs:sofiwp:2000_005

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    Postal: SOFI, Stockholm University, SE-10691 Stockholm, Sweden
    Phone: (0)8 - 16 32 48
    Fax: (0)8 - 15 46 70
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    Related research

    Keywords: non-wage benefits; wage inequality; earnings-related insurance rights; survivors' pension rights;

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    References

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    1. Richardson, Katarina, 2000. "The evolution of the marriage premium in the Swedish labor market 1968-1991," Working Paper Series 2000:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. Per-Anders Edin & Bertl Holmlund, 1993. "The Swedish Wage Stucture: The Rise and Fall of Solidarity Wage Policy?," NBER Working Papers 4257, National Bureau of Economic Research, Inc.
    3. Barr, Nicholas, 1992. "Economic Theory and the Welfare State: A Survey and Interpretation," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 741-803, June.
    4. Nicholas Barr, 1992. "Economic theory and the welfare state : a survey and interpretation," LSE Research Online Documents on Economics 279, London School of Economics and Political Science, LSE Library.
    5. Jan Selén & Ann-Charlotte Ståhlberg, 1998. "Pension Rights and Wages," LABOUR, CEIS, vol. 12(1), pages 191-209, 03.
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