Searching For Better Prospects: Endogenizing Falling Job Tenure and Private Pension Coverage

Leora Friedberg, Michael Owyang and Tara Sinclair

The B.E. Journal of Economic Analysis & Policy, 2006, vol. 6, issue 1, 42

Abstract: Recent declines in job tenure have coincided with a shift away from traditional defined benefit (DB) pensions, which reward long tenure. New evidence also points to an increase in job-to-job movements by workers, and we document gains in relative wages of job-to-job movers over a similar period. We develop a search model in which firms may offer tenure-based contracts like DB pensions to reduce the incidence of costly on-the-job search by workers. Either reduced search costs or an increase in the probability of job matches can, under fairly general conditions, lower the value of deterring search and the use of DB pensions.

Keywords: pension; contracts; on-the-job search; job tenure; matching models; job-to-job flows (search for similar items in EconPapers)
Date: 2006
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.2202/1538-0653.1500 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: Searching for better prospects: endogenizing falling job tenure and private pension coverage (2006)
Working Paper: Searching for Better Prospects: Endogenizing Falling Job Tenure and Private Pension Coverage (2005)
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: https://EconPapers.repec.org/RePEc:bpj:bejeap:v:topics.6:y:2006:i:1:n:14

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejeap/html

DOI: 10.2202/1538-0653.1500

Access Statistics for this article

The B.E. Journal of Economic Analysis & Policy is currently edited by Hendrik Jürges and Sandra Ludwig

More articles in The B.E. Journal of Economic Analysis & Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().