Pensions in Labor Contracts
This paper con siders the optimality of a two-period employment contract between a firm and a worker, in which the firm provides the employee with insurance against states of low consumption with a wage/pension payment schedule contingent upon the worker's productivity and state of employment. The paper shows that with endogenous quits and dismissals, the equilibrium pension plan could either impose vesting requirements or provide for severance pay depending on the relative perceptions of the probability of separation by the two parties, the worker's productivi ty in each state of employment, and the firm's policy regarding emplo yee retention. Copyright 1988 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 29 (1988)
Issue (Month): 3 (August)
|Contact details of provider:|| Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297|
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |