How Has Public Policy Shaped Defined-Benefit Pension Coverage in Canada?

Andrew A. Luchak, Tony Fang and Morley Gunderson ()

Journal of Labor Research, 2004, vol. 25, issue 3, 469-484

Abstract: Unlike federal regulation in the United States, variation in provincial regulation across Canada provides a natural laboratory to examine the impact of public policy on pension coverage. Using data from a nationally representative sample of private sector workers in Canada in 1994, we find that higher marginal taxes, earlier vesting, and more permissive eligibility rules increase coverage, while a ban on mandatory retirement has a negative, but insignificant effect. Implications for differences in defined-benefit coverage between Canada and the United States, and pension theory, research, and practice are discussed.

Date: 2004
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