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Employer Size and Labor Turnover: The Role of Pensions

Listed author(s):
  • William E. Even
  • David A. MacPherson

The well-documented lower labor turnover in large firms than in smaller firms has been cited as evidence that large firms pay workers above their opportunity wage. This study investigates whether the relationship between firm size and turnover can instead be accounted for in part by size-related differences in the availability, portability, or generosity of pension plans. Analyzing extensive data for the years 1973–93, the authors find that pension coverage was associated with a greater reduction in worker turnover in large firms than in small firms. They also find that when appropriate controls for worker characteristics are employed, there is virtually no association between firm size and labor turnover for workers not covered by a pension.

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File URL: http://ilr.sagepub.com/content/49/4/707.abstract
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Article provided by Cornell University, ILR School in its journal Industrial & Labor Relations Review.

Volume (Year): 49 (1996)
Issue (Month): 4 (July)
Pages: 707-728

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Handle: RePEc:sae:ilrrev:v:49:y:1996:i:4:p:707-728
Contact details of provider: Web page: http://www.ilr.cornell.edu

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