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

Leora Friedberg, Michael Owyang and Tara Sinclair

No 11808, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Recent declines in job tenure have coincided with a shift away from traditional defined benefit (DB) pensions, which reward long tenure. Recent 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. Reduced search costs can, under fairly general conditions, lower the value of deterring search and the use of DB pensions.

JEL-codes: E24 J32 J41 J63 J64 (search for similar items in EconPapers)
Date: 2005-12
Note: AG LS
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Citations: View citations in EconPapers (1)

Published as Friedberg Leora & Owyang Michael T & Sinclair Tara M, 2006. "Searching For Better Prospects: Endogenizing Falling Job Tenure and Private Pension Coverage," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-42, August.

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Journal Article: Searching For Better Prospects: Endogenizing Falling Job Tenure and Private Pension Coverage (2006)
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