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How Has Public Policy Shaped Defined-Benefit Pension Coverage in Canada?

Author

Listed:
  • ANDREW A. LUCHAK
  • TONY FANG
  • MORLEY GUNDERSON

Abstract

Unlike federal regulation in the United States, variation in provincial regulation across Canada provides a natural laboratory to examine the impact of public policy on pension coverage. Using data from a nationally representative sample of private sector workers in Canada in 1994, we find that higher marginal taxes, earlier vesting, and more permissive eligibility rules increase coverage, while a ban on mandatory retirement has a negative, but insignificant effect. Implications for differences in defined-benefit coverage between Canada and the United States, and pension theory, research, and practice are discussed.

Suggested Citation

  • Andrew A. Luchak & Tony Fang & Morley Gunderson, 2004. "How Has Public Policy Shaped Defined-Benefit Pension Coverage in Canada?," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 469-484, July.
  • Handle: RePEc:tra:jlabre:v:25:y:2004:i:3:p:469-484
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