ERIC Number: ED419092
Record Type: RIE
Publication Date: 1998
Pensions and Productivity.
Dorsey, Stuart; Cornwell, Christopher; Macpherson, David
This book analyzes the productivity theory of pensions. First, it reviews the history and institutional practices of private pensions and government policy. Chapter 1 discusses demand-side and supply-side perspectives on pensions, the significance of the productivity theory of pensions, and the organization of this book. Chapter 2 traces origins of private pensions and evolution of current coverage and discusses federal policies. Chapter 3 shows how workers who leave a job with a defined-benefit pension are penalized, presents advantages of defined-benefit plans in establishing retirement incentives, and discusses how defined-contribution plans may convey productive incentives. Second, the book considers whether pension incentives are consistent with models of internal labor markets. Chapter 4 reviews employment models in which specific training and monitoring costs generate job-specific productivity gains and compares pension incentives with ideal solutions. Third, the book evaluates empirical evidence that pensions promote productivity. Chapter 5 reviews empirical studies that test the pension-productivity hypothesis, which addresses the growing popularity of defined-contribution plans. It considers whether the declining market share of defined-benefit plans is evidence that pension incentives are no longer important. Chapter 6 tests one of the channels by which pensions may enhance worker productivity: by promoting investments in worker training. Chapter 7 reports direct estimates of productivity gains for firms that sponsor defined-benefit pensions. Chapter 8 presents a pension policy and research recommendations. (Appendixes contain 131 references and author and subject indexes.) (YLB)
Descriptors: Adult Education, Early Retirement, Efficiency, Federal Government, Human Resources, Incentives, Job Training, Labor Market, Productivity, Public Policy, Retirement Benefits
W.E. Upjohn Institute for Employment Research, 300 South Westnedge Avenue, Kalamazoo, MI 49007 (paperback: ISBN-0-88099-185-2, $13; hardcover: ISBN-0-88099-186-0, $23).
Publication Type: Books; Reports - Research
Education Level: N/A
Authoring Institution: Upjohn (W.E.) Inst. for Employment Research, Kalamazoo, MI.
Note: Of particular interest to educators will be chapter 6: "Estimates of the Pension/Training Relationship" (p.73-91).