TY  - JOUR
AU  - Allen,Steven G.
AU  - Clark,Robert L.
TI  - Pensions and Firm Performance
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2266
PY  - 1987
Y2  - May 1987
DO  - 10.3386/w2266
UR  - http://www.nber.org/papers/w2266
L1  - http://www.nber.org/papers/w2266.pdf
N1  - Author contact info:
Steven G. Allen
Jenkins Graduate School of Management
NC State University
2124 Nelson Hall
P.O.Box 7229
Raleigh, NC  27695-7229
Tel: 919/515-6941
Fax: 919/515-5073
E-Mail: steve_allen@ncsu.edu

Robert L. Clark
Poole College of Management
Box 7229
North Carolina State University
Raleigh, NC 27695
Tel: 919/515-4568
Fax: 919/515-6943
E-Mail: robert_clark@ncsu.edu
AB  - This paper examines how pension plans affect employee behavior and firm performance. Theoretically, the impact of pensions on firm performance cannot be predicted. Firms with pensions should have lower turnover rates and more efficient retirement decisions; their employees will be less likely to shirk. On the other hand, pension compensation is not very closely linked to worker performance and there is some risk that turnover may fall too much. The evidence indicates that although wages do not seem to fall with pension compensation, profit rates are not affected by pension coverage. This suggests that pension coverage is associated with higher productivity, a proposition that is supported by indirect evidence on pensions, turnover, and productivity but not by direct tests of how pension coverage and productivity are correlated.
ER  -