Labor Market Uncertainty and Pension System Performance

34 Pages Posted: 23 Sep 2009

See all articles by Olivia S. Mitchell

Olivia S. Mitchell

University of Pennsylvania - The Wharton School; University of Pennsylvania - The Wharton School, Pension Research Council; National Bureau of Economic Research (NBER)

John A. Turner

affiliation not provided to SSRN

Date Written: September 22, 2009

Abstract

The financial market crisis has prompted policymakers to devote substantial attention to ways in which capital market risks shape pension performance, but few analysts have asked how shocks to human capital shape retirement wellbeing. Yet human capital risks due to fluctuations in labor earnings, employment volatility, and survival, can have a profound influence on pension accumulations and payouts. This paper reviews existing studies and offers a framework to think about how human capital risk can influence pension outcomes. We conclude with thoughts on how future analysts can better assess sensitivity of pension plan outcomes to a labor income uncertainty.

Suggested Citation

Mitchell, Olivia S. and Turner, John A, Labor Market Uncertainty and Pension System Performance (September 22, 2009). Pension Research Council WP 2009-11, Available at SSRN: https://ssrn.com/abstract=1477119 or http://dx.doi.org/10.2139/ssrn.1477119

Olivia S. Mitchell (Contact Author)

University of Pennsylvania - The Wharton School ( email )

Philadelphia, PA 19104-6365
United States

University of Pennsylvania - The Wharton School, Pension Research Council ( email )

3302 Steinberg Hall-Dietrich Hall
3620 Locust Walk
Philadelphia, PA 19104-6302
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

John A Turner

affiliation not provided to SSRN

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