Employer Size and Labor Turnover: The Role of Pensions
INDUSTRIAL AND LABOR RELATIONS REVIEW, July 1996
Posted: 25 Jun 1998
Abstract
The well-documented lower labor turnover in large firms than in smaller firms has been cited as evidence that large firms pay workers above their opportunity wage. This study examines whether the relationship between firm size and turnover can instead be accounted for by size-related differences in the availability, portability, or generosity of pension plans. Analyzing extensive data for the years 1973-93, the authors find that pension coverage is associated with a greater reduction in worker turnover in large firms than in small firms. They also find that when appropriate controls for worker characteristics are employed, there is virtually no association between firm size and labor turnover.
JEL Classification: J32, J33, J41, J63
Suggested Citation: Suggested Citation