Encouraging Long-Term Tenure: Wage Tilt or Pensions?

Richard A. Ippolito

ILR Review, 1991, vol. 44, issue 3, 520-535

Abstract: The author analyzes data on 6,416 persons in 109 firms to determine whether the length of these workers' tenure was positively related either to wage tilt—the payment of below-market wages in the early years of the worker's employment with a firm and above-market wages in the later years—or to the presence of defined benefit pension plans. Contrary to the popular (but little-tested) hypothesis that wage tilt is important in inducing workers to make long-term commitments to the firm, the results show that wage tilt had no significant effect on tenure, except indirectly through its effect on pension quit costs. In contrast, pensions increased tenure in the firm, on average, by more than 20%.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://ilr.sagepub.com/content/44/3/520.abstract (text/html)

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: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:44:y:1991:i:3:p:520-535

Access Statistics for this article

More articles in ILR Review from Cornell University, ILR School
Bibliographic data for series maintained by SAGE Publications ().