Pensions and Wages: An Hedonic Price Theory Approach
Edward B. Montgomery, Kathryn Shaw, Mary Ellen Benedict
NBER Working Paper No. 3458
This paper examines whether a tradeoff exists between the level of pension benefits and wages for comparably skilled workers. The 1983 survey of Consumer Finances is used to match detailed information on pension plans to detailed personal characteristics of a random sample of the population. The pension wage tradeoff is estimated using both a life-tine or contractual model of the labor market and the spot market model used in previous studies. The results indicate a large negative tradeoff in the contractual model but only a negligible tradeoff in the spot market model. Results from estimating the underlying structural supply and demand equation for pensions are also presented.
Document Object Identifier (DOI): 10.3386/w3458
Published: International Economic Review Volume 33, no. 1, pp.111-128 February 1992 citation courtesy of