Occupationa Pensions, Wages And Tenure Wage Profiles
Using data from the BHPS, we estimate the impact of occupational pensions on wages and on the tenure profile of wages of male private sector workers in the UK. According to the theoretical literature, occupational pensions participants should receive a premium at the beginning of their careers, when the financial quit disincentives stemming from defined benefit plans are less binding. Our empirical evidence is consistent with this prediction. We find that occupational pension participants earn a positive wage premium only at the beginning of the career. Once we account for the endogenous sorting of individuals into occupational pension schemes, the magnitude of the estimated premium decreases sharply and it looses statistical significance. Indeed, the wage premium appears to be completely explained by unobservable individual and job match heterogeneity.
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NBER Working Papers
2548, National Bureau of Economic Research, Inc.
- Finnie, R., 1993. "Tenure Experience, and Men's and Women's Wages: Panel Estimates from the National Longitudinal Survey of Youth," Papers 9305, Laval - Recherche en Politique Economique.
- Dustmann, Christian & Pereira, Sonia C., 2005. "Wage Growth and Job Mobility in the U.K. and Germany," IZA Discussion Papers 1586, Institute for the Study of Labor (IZA).
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