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Work Now, Pay Later? An Empirical Analysis of the Pension Pay-Trade Off

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  • Jonathan Haynes
  • John Sessions

    (University of Bath)

Abstract

We investigate the potential compensating differential between wages and pensions on a sample of British workers. Random effects panel regressions are run applying the Schiller and Weiss (1980) methodology to test whether a pension-wage compensating differential exists. Using data from British Household Panel Survey (BHPS) and derived prospective pension variables, calculated by the Institute for Fiscal Studies (IFS), the regression results do not support evidence for a trade off. Further analysis finds no significant differences in results between public and private sector workers, even after controlling for sample selection bias wage.

Suggested Citation

  • Jonathan Haynes & John Sessions, 2011. "Work Now, Pay Later? An Empirical Analysis of the Pension Pay-Trade Off," Department of Economics Working Papers 05/11, University of Bath, Department of Economics.
    • Handle: RePEc:eid:wpaper:32992
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    2. Maurizio Caserta & Livio Ferrante & Francesco Reito, 2020. "Who pays for workplace benefits?," Manchester School, University of Manchester, vol. 88(4), pages 556-574, July.

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    More about this item

    Keywords

    monitoring; tenure; efficiency wages;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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