TY  - JOUR
AU  - Allen,Steven G.
AU  - Clark,Robert L.
TI  - Unions, Pension Wealth, and Age-Compensation Profiles
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1677
PY  - 1985
Y2  - August 1985
UR  - http://www.nber.org/papers/w1677
L1  - http://www.nber.org/papers/w1677.pdf
N1  - Author contact info:
Steven G. Allen
Jenkins Graduate School of Management
NC State University
2124 Nelson Hall
Raleigh, NC  27695-7229
Tel: 919/515-6941
Fax: 919/515-5073
E-Mail: STEVE_ALLEN@NCSU.EDU
AB  - This paper examines the effect of unions on both the magnitude and  distribution of pension benefits. Our empirical results show that beneficiaries in collectively bargained plans receive larger benefits when they retire, receive larger increases in their benefits after they retire, and retire at an earlier age than beneficiaries in other pension plans. As a result, the pension wealth of union beneficiaries is 50 to 109 percent greater than that of nonunion beneficiaries. Just as wage differentials within and across establishments are smaller among union workers, benefit differentials within and across cohorts of retirees are smaller among union beneficiaries. This results from the smaller weight given to salary average in determining initial benefits and the larger percentage increases given to those who have been retired the longest under post-retirement increases. The more compressed benefit structure under unionism causes the union-nonunion compensation (wages plus pension contributions) differential to decline more quickly than the union-nonunion wage differential over the life cycle.
ER  -