The Effect of Pensions on Job Mobility: Empirical Evidence for the UK

Rodrigo Lluberas

Research Reports from Watson Wyatt Worldwide

Abstract: In this paper we study the effect of pension provision on employee turnover in the UK. In Great Britain, there are three forms of pension coverage: the public social security system, occupational pension plans and personal pensions. We focus on the effect of occupational pension plans on job mobility by studying the different patterns formed by workers in Defined Contributions vs. workers in Defined Benefit pension schemes. Using two distinct empirical approaches we find that workers in DB pension schemes are less likely to move jobs than those in DC schemes.

Pages: 23
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