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Occupational Pensions, Wages, And Job Mobility In Germany

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  • Birgitta Rabe
Abstract
Pension‐covered workers in Germany are three times less likely to change jobs than workers not covered by an occupational pension scheme. This paper examines the effects of occupational pension coverage and pension portability loss on voluntary job changes using a sample selection model with endogenous switching. The model estimates, derived from western German panel data for 1985–1998, indicate that occupational pension coverage reduces worker mobility by imposing a capital loss on those leaving their job before retirement age. Moreover, pension‐covered workers receive a higher compensation, which discourages mobility. Making pensions portable increases mobility, but from a low initial level.

Suggested Citation

  • Birgitta Rabe, 2007. "Occupational Pensions, Wages, And Job Mobility In Germany," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(4), pages 531-552, September.
  • Handle: RePEc:bla:scotjp:v:54:y:2007:i:4:p:531-552
    DOI: 10.1111/j.1467-9485.2007.00428.x
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    References listed on IDEAS

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    1. Vincenzo Andrietti, 2001. "Occupational Pensions and Interfirm Job Mobility in the European Union. Evidence from the ECHP Survey," CeRP Working Papers 05, Center for Research on Pensions and Welfare Policies, Turin (Italy).
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    Cited by:

    1. Ashok Thomas & Luca Spataro, 2013. "Pension funds and Market Efficiency: A review," Discussion Papers 2013/164, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    2. Gopi Shah Goda & Damon Jones & Colleen Manchester, 2013. "Retirement Plan Type and Employee Mobility: The Role of Selection and Incentive Effects," Discussion Papers 13-018, Stanford Institute for Economic Policy Research.
    3. Quinby, Laura D. & Wettstein, Gal, 2021. "Do deferred benefit cuts for current employees increase separation?," Labour Economics, Elsevier, vol. 73(C).
    4. Mario Bossler, 2015. "The efficiency wage effect of employer provided occupational pensions," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-17, December.

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