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


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.

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Article provided by Transaction Publishers in its journal Journal of Labor Research.

Volume (Year): 25 (2004)
Issue (Month): 3 (July)
Pages: 469-484

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Handle: RePEc:tra:jlabre:v:25:y:2004:i:3:p:469-484
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