Labour Mobility, Pension Portability and the Lack of Lock-In Effects
Link to article:
Authors:
Hernæs, Erik, John Piggott, Ola Lotherington Vestad and Tao Zhang
Year:
2011
Reference:
Andre skrifter
Australian School of Business Research Paper No. 2011 AIPAR 01
Summary
This paper revisits the question of whether defined benefit pension plans inhibit labour mobility. Using national register data for three distinct 3 year periods, we define and calculate a measure of changes in individual pension entitlements which we term potential portability gain. Estimation results indicate that the effect of portability gains on the propensity to change jobs is either weak or non-existent, and there are no signs of gains or losses in pension entitlements being reflected in wages for job changers. We conclude that potential portability gains or losses in occupational pensions are of negligible importance for labour market mobility.
JEL:
J26, J33, J62
Keywords:
labour market mobility, defined benefit occupational pensions, matched employer-employee register data
Project:
Oppdragsgiver: Arbeids- og inkluderingsdepartementetOppdragsgivers prosjektnr.:
Frisch prosjekt: 1307 - Strategic centre programme on pension research
Contact:
erik.hernas@frisch.uio.no
Financing:
Ministry of Labour
