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Negative reciprocity and retrenched pension rights

Author

Listed:
  • Montizaan, R.M.

    (Research Centre for Educ and Labour Mark)

  • Cörvers, F.

    (Research Centre for Educ and Labour Mark)

  • de Grip, A.

    (Research Centre for Educ and Labour Mark)

  • Dohmen, T.J.

    (Macro, International & Labour Economics, Research Centre for Educ and Labour Mark)

Abstract
We document the importance of negatively reciprocal inclinations in labor relationships by showing that a retrenchment of pension rights, which is perceived as unfair, causes a larger reduction in job motivation the stronger workers' negatively reciprocal inclinations are. We exploit unique matched survey and administrative data on male employees in the public sector in the Netherlands and compare the job motivation of employees born in 1950, who faced a substantial retrenchment of their pension rights resulting from a pension reform in 2006, to that of slightly older employees who remain entitled to more generous pension benefits. Job motivation is significantly lower among negatively reciprocal employees who were affected by the reform. The negative effect on job motivation is greater for negative reciprocal employees born very shortly after the cut-off date of January 1, 1950, as well as for those with many untreated colleagues, and who therefore arguably perceive the policy change as being more unfair. We also find that the treatment effect is stronger among workers who are more likely to hold their employer accountable for the drop in their pension rights, that is, those who work for the national government.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Montizaan, R.M. & Cörvers, F. & de Grip, A. & Dohmen, T.J., 2012. "Negative reciprocity and retrenched pension rights," ROA Research Memorandum 015, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    • Handle: RePEc:unm:umaror:2012015
    DOI: 10.26481/umaror.2012015
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    as
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    Cited by:

    1. Montizaan, R.M. & de Grip, A. & Fouarge, D., 2015. "Training access, reciprocity, and expected retirement age," Research Memorandum 005, Maastricht University, Graduate School of Business and Economics (GSBE).
    2. Andries de Grip & Didier Fouarge & Raymond Montizaan, 2013. "How Sensitive are Individual Retirement Expectations to Raising the Retirement Age?," De Economist, Springer, vol. 161(3), pages 225-251, September.
    3. Dohmen, Thomas, 2014. "Behavioral labor economics: Advances and future directions," Labour Economics, Elsevier, vol. 30(C), pages 71-85.
    4. Sander Gerritsen, 2014. "Zero returns to compulsory schooling: Is it certification or skills that matters?," CPB Discussion Paper 293, CPB Netherlands Bureau for Economic Policy Analysis.

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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