The Determinants of Occupational Pensions

Hernæs, Erik (), John Piggott, Tao Zhang () and Strøm, Steinar ()
Additional contact information
Hernæs, Erik: The Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, N-0349 Oslo, Norway
Tao Zhang: The Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, N-0349 Oslo, Norway
Strøm, Steinar: Dept. of Economics, University of Oslo, Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Authors registered in the RePEc Author Service: Erik Hernaes () and Steinar Strøm ()

No 01/2006, Memorandum from Oslo University, Department of Economics

Abstract: The decision by firms to offer an occupational pension is investigated with a unique linked employer-employee dataset, supplemented with detailed actuarial calculations of the cost to the firms of offering occupational pensions and constructed tax gains from pension contributions versus cash wage, driven by lower tax on wages than on pensions. The tax gains which can be shared between employers and employees by the degree of wage moderation, are clearly associated with the occurrence of an occupational pension plan. An occupational pension is associated with longer average tenure in the firm. Occupational pensions typically are found in large firms, and individual wage negotiations, a high degree of unionization and requirement of long training are all positively associated with an occupational pension. Hence, financial and productivity incentives are found to operate within a moderating institutional framework.

Keywords: Occupational pensions; tax gains; tenure; linked employer-employee datasets (search for similar items in EconPapers)
JEL-codes: C25 D21 G23 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2006-01-05
New Economics Papers: this item is included in nep-fin and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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