This paper examines whether a tradeoff exists between the level of pension benefits and wages for comparably skilled workers. The 1983 survey of Consumer Finances is used to match detailed information on pension plans to detailed personal characteristics of a random sample of the population. The pension wage tradeoff is estimated using both a life-tine or contractual model of the labor market and the spot market model used in previous studies. The results indicate a large negative tradeoff in the contractual model but only a negligible tradeoff in the spot market model. Results from estimating the underlying structural supply and demand equation for pensions are also presented.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
3458.
Length: Date of creation: Oct 1990 Date of revision: Handle: RePEc:nbr:nberwo:3458
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Article
Montgomery, Edward & Shaw, Kathryn & Benedict, Mary Ellen, 1992.
"Pensions and Wages: An Hedonic Price Theory Approach,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(1), pages 111-28, February.
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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.:
Ronald G. Ehrenberg & Joshua L. Schwarz, 1987.
"Public Sector Labor Markets,"
NBER Working Papers
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Ehrenberg, Ronald G. & Schwarz, Joshua L., 1987.
"Public-sector labor markets,"
Handbook of Labor Economics,
in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 22, pages 1219-1260
Elsevier.
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Hu, Sheng Cheng, 1988.
"Pensions in Labor Contracts,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(3), pages 477-92, August.
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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.)
Edward Montgomery & Kathryn Shaw, 1992.
"Pensions and Wage Premia,"
NBER Working Papers
3985, National Bureau of Economic Research, Inc.
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