A model of the firm and its pension plan is used to simulate the first round effects of pension policies. Pension policies create an imbalance in the pension fund which affects the level of pension contributions and ultimately wages. Changes in the differential between compensation and productivity for individual workers alter the distributions of compensation and of incentives for retirement, mobility and effort. Policies investigated include those regulating vesting, pension calculations for early leavers, early retirees and late retirees, maximum service credits, liabilities at termination, and funding practices.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
3085.
Length: Date of creation: Aug 1989 Date of revision: Handle: RePEc:nbr:nberwo:3085
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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.:
Edward P. Lazear, 1983.
"Pensions as Severance Pay,"
NBER Chapters,
in: Financial Aspects of the United States Pension System, pages 57-90
National Bureau of Economic Research, Inc.
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