EconPapers    
Economics at your fingertips  
 

The efficiency wage effect of employer provided occupational pensions

Mario Bossler ()

IZA Journal of European Labor Studies, 2015, vol. 4, issue 1, 1-17

Abstract: Using new linked employer-employee data from Germany, this article provides the first evidence on the effect of employer provided occupational pensions on work engagement. Famous efficiency wage theories predict that pensions enhance effort if a risk of forfeiture of pension claims is present. Exploiting the German non-forfeiture clause for employer-provided pensions, the results are consistent with the theoretical prediction and show that pensions in combination with the risk of forfeiture exert a positive effect on work engagement. Since occupational pension claims are selectively distributed across establishments, I control for establishment heterogeneity, but point estimates remain of the same size. Conditional quantile regression estimates indicate that especially the lower end of the engagement distribution is affected, which suggests that pensions combined with the risk of forfeiture are effective to reduce incentives for shirking. JEL classification: J14; J26; J32 Copyright Bossler; licensee Springer. 2015

Keywords: Occupational pensions; Non-forfeiture clause; Efficiency wages; Delayed compensation; Work engagement (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1186/s40174-015-0031-4 (text/html)
Access to full text is restricted to subscribers.

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:spr:izaels:v:4:y:2015:i:1:p:1-17:10.1186/s40174-015-0031-4

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40174

Access Statistics for this article

IZA Journal of European Labor Studies is currently edited by Sara de la Rica, Alan Barrett and Martin Kahanec

More articles in IZA Journal of European Labor Studies from Springer, Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-01-17
Handle: RePEc:spr:izaels:v:4:y:2015:i:1:p:1-17:10.1186/s40174-015-0031-4