EconPapers    
Economics at your fingertips  
 

Occupational pensions and interfirm job mobility in the European Union. Evidence from the ECHP survey

Vincenzo Andrietti

No 2000-07, ISER Working Paper Series from Institute for Social and Economic Research

Abstract: Discussion of problems posed by defined benefit occupational pension plans to the free circulation of private sector workers in the European Union has been mainly driven by the theoretical arguments, while little attempt has been made to support these arguments with empircal evidence. The papers main objective is to fill this gap, modelling the role of expected pension portability losses on individual job mobility choices in a sample of European Union Member States with different pension portability rules, and estimating the model with a new longitudinal data set derived from the first two waves of the European Community Household Panel survey. Individual job mobility status is seen as endogenously determined through a comparative evaluation of expected benefits and costs from mobility. Following Heckmans (1979) two-step procedure, we consistently estimate wage equations parameters and individual mover/stayer structural wage differentials corrected for self-selectivity. Maximum likelihood estimatation of a structural probit equation accounting for estimated wage differentials allows the recovering of structural mobility costs parameters. In particular, occupational defined benefit pensions seem to act, through pension portability losses, as a significant impediment to individual labour mobility in all countries but Spain, while evidence for Denmark is consistent with full portability of defined contribution pensions.

Date: 2000-02-01
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Published

Downloads: (external link)
https://www.iser.essex.ac.uk/publications/working-papers/iser/2000-07.pdf (application/pdf)

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:ese:iserwp:2000-07

Ordering information: This working paper can be ordered from
Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
https://www.iser.essex.ac.uk/publications/

Access Statistics for this paper

More papers in ISER Working Paper Series from Institute for Social and Economic Research
Address: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
Contact information at EDIRC.
Series data maintained by Paul Groves ().

 
Page updated 2013-12-12
Handle: RePEc:ese:iserwp:2000-07