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The Evolution of Pension Coverage of Young and Prime-aged Workers in Canada

Author

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  • Drolet, Marie
  • Morissette, Rene

Abstract

In this paper, we assemble data from several household surveys to document how pension coverage of young and older workers has evolved in Canada between the mid-1980s and the mid-1990s. Our main findings are the following. First, both administrative data from the Pension Plans in Canada (PPIC) database and data from household surveys show an increase in RPP coverage for women. In contrast, while PPIC data show a decrease in coverage for men, household surveys indicate no downward trend for males. Second, sample aggregates hide interesting differences within the population. We find that the pension coverage of young workers (aged 25-34) has declined relative to older workers (aged 35-54). Young males have experienced a decline in coverage while RPP coverage has remained fairly stable for older men. In contrast, pension coverage has remained fairly constant for young women but has risen substantially for older women. Third, the decline in unionism and shifts towards industries with low-coverage explain most of the decrease in coverage observed among young men. Fourth, the growth in older women's coverage appears to be the result of their greater propensity to be employed in highly paid/highly covered occupations.

Suggested Citation

  • Drolet, Marie & Morissette, Rene, 1999. "The Evolution of Pension Coverage of Young and Prime-aged Workers in Canada," Analytical Studies Branch Research Paper Series 1999138e, Statistics Canada, Analytical Studies Branch.
  • Handle: RePEc:stc:stcp3e:1999138e
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    File URL: http://www5.statcan.gc.ca/olc-cel/olc.action?ObjId=11F0019M1999138&ObjType=46&lang=en&limit=0
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    References listed on IDEAS

    as
    1. Drolet, Marie & Morissette, Rene, 1998. "Recent Canadian Evidence on Job Quality by Firm Size," Analytical Studies Branch Research Paper Series 1998128e, Statistics Canada, Analytical Studies Branch.
    2. Even, William E. & Macpherson, David A., 1990. "Plant size and the decline of unionism," Economics Letters, Elsevier, vol. 32(4), pages 393-398, April.
    3. Denise J. Doiron & W. Craig Riddell, 1994. "The Impact of Unionization on Male-Female Earnings Differences in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 504-534.
    4. Alan L. Gustman & Olivia S. Mitchell & Thomas L. Steinmeier, 1993. "The Role of Pensions in the Labor Market," NBER Working Papers 4295, National Bureau of Economic Research, Inc.
    5. David E. Bloom & Richard B. Freeman, 1992. "The Fall in Private Pension Coverage in the U.S," NBER Working Papers 3973, National Bureau of Economic Research, Inc.
    6. Heisz, Andrew, 1996. "Changes in Job Tenure and Job Stability in Canada," Analytical Studies Branch Research Paper Series 1996095e, Statistics Canada, Analytical Studies Branch.
    7. Mitchell, Olivia S, 1988. "Worker Knowledge of Pension Provisions," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 21-39, January.
    8. Rene Morissette, 1993. "Canadian Jobs and Firm Size: Do Smaller Firms Pay Less?," Canadian Journal of Economics, Canadian Economics Association, vol. 26(1), pages 159-174, February.
    9. Parsons, Donald O., 1991. "The decline in private pension coverage in the United States," Economics Letters, Elsevier, vol. 36(4), pages 419-423, August.
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    Cited by:

    1. Larochelle-Cote, Sebastien & Myles, John & Picot, Garnett, 2008. "Income Security and Stability During Retirement in Canada," Analytical Studies Branch Research Paper Series 2008306e, Statistics Canada, Analytical Studies Branch.

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