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Choice of pension scheme and job mobility in Britain

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Author Info
Richard Disney () (Institute for Fiscal Studies and University of Nottingham)
Carl Emmerson () (Institute for Fiscal Studies)
Abstract

This paper examines the choice of pension scheme and job mobility in Britain. Workers in Britain can choose to belong wholly to the social security (public pension) programme, or to a company-provided plan (occupational pension), or to purchase their own individual pension. We use household panel data for the 1990s to show that individuals that subsequently move job select pension arrangements that a priori impose lower costs on job mobility. A feature of the British policy ‘experiment’, and of the data, is that we can differentiate between choice of actual pension arrangement by the individual and what pension arrangements were offered to that individual. This permits us to test indirectly whether the observed relationship arises from employer selection or from pension scheme design.

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Publisher Info
Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W02/09.

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Length: 42 pages
Date of creation: May 2002
Date of revision:
Handle: RePEc:ifs:ifsewp:02/09

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Related research
Keywords: Pensions; job tenure; labour mobility;

Find related papers by JEL classification:
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Mealli, Fabrizia & Pudney, Stephen, 1996. "Occupational Pensions and Job Mobility in Britain: Estimation of a Random-Effects Competing Risks Model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(3), pages 293-320, May-June. [Downloadable!] (restricted)
  2. Disney, Richard & Whitehouse, Edward, 1996. "What Are Occupational Pension Plan Entitlements Worth in Britain?," Economica, London School of Economics and Political Science, vol. 63(250), pages 213-38, May. [Downloadable!] (restricted)
  3. Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-20, September. [Downloadable!] (restricted)
  4. Schiller, Bradley R & Weiss, Randall D, 1979. "The Impact of Private Pensions on Firm Attachment," The Review of Economics and Statistics, MIT Press, vol. 61(3), pages 369-80, August. [Downloadable!] (restricted)
  5. Stock, James H & Wise, David A, 1990. "Pensions, the Option Value of Work, and Retirement," Econometrica, Econometric Society, vol. 58(5), pages 1151-80, September. [Downloadable!] (restricted)
    Other versions:
  6. Dilnot, Andrew & Disney, Richard & Johnson, Paul & Whitehouse, Edward, 1994. "Pensions policy in the UK: An economic analysis," MPRA Paper 10478, University Library of Munich, Germany. [Downloadable!]
  7. McCormick, Barry & Hughes, Gordon, 1984. "The influence of pensions on job mobility," Journal of Public Economics, Elsevier, vol. 23(1-2), pages 183-206. [Downloadable!] (restricted)
  8. Henley, Andrew & Disney, Richard & Carruth, Alan, 1994. "Job Tenure and Asset Holdings," Economic Journal, Royal Economic Society, vol. 104(423), pages 338-49, March. [Downloadable!] (restricted)
  9. Stuart Dorsey, 1995. "Pension portability and labor market efficiency: A survey of the literature," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 48(2), pages 276-292, January.
  10. James Banks & Carl Emmerson, 2000. "Public and private pension spending: principles, practice and the need for reform," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 1-63, March. [Downloadable!]
  11. Alan L. Gustman & Thomas L. Steinmeier & Olivia Mitchell, 1994. "The role of pensions in the labor market: A survey of the literature," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 47(3), pages 417-438, April.
  12. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-84, December. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Vincenzo Andrietti, 2004. "Pension Choices And Job Mobility In The Uk," Economics Working Papers we043713, Universidad Carlos III, Departamento de Economía. [Downloadable!]
  2. repec:ese:iserwp: is not listed on IDEAS
  3. Vincenzo Andrietti & Eleonora Patacchini, 2004. "Occupationa Pensions, Wages And Tenure Wage Profiles," Economics Working Papers we043612, Universidad Carlos III, Departamento de Economía. [Downloadable!]
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This page was last updated on 2009-11-27.


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