Wage-pension trade-offs in collective agreements

Morley Gunderson (), James Pesando and Douglas Hyatt

Industrial and Labor Relations Review, 1992, vol. 46, issue 1, pages 146-160

Abstract: Analyzing 98 matched collective agreements and flat benefit pension plans in Ontario in 1984, the authors find evidence of a significant trade-off between wages and an actuarially constructed summary measure of the expected future pension costs for employers. With respect to the separate components of the pension plans, they find a significant trade-off between wages and the main item that is bargained over-the flat benefit rate-but not between wages and most of the early and postponed retirement options. These results obtain when the pension variables are specified as a proportion of wages, to capture the assumption that the generosity of pension plans is reflected in replacement rates, and when simultaneous equation procedures are used to account for the possible endogeneity of pensions; the trade-off disappears, however, when the pension variables are specified in dollar amounts. (Abstract courtesy JSTOR.)

Date: 1992
View citations in EconPapers

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ilr:articl:v:46:y:1992:i:1:p:146-160

Ordering information: This journal article can be ordered from
621 Ives Hall, Cornell Univ., Ithaca, NY 14853-3901
http://digitalcommons.ilr.cornell.edu/ilrreview/

Access Statistics for this article

Industrial and Labor Relations Review is edited by Tove Hammer

More articles in Industrial and Labor Relations Review from ILR Review, ILR School, Cornell University
Contact information at EDIRC.
Series data maintained by Jami Carlacio ().