Employer Size and Labor Turnover: The Role of Pensions

INDUSTRIAL AND LABOR RELATIONS REVIEW, July 1996

Posted: 25 Jun 1998

See all articles by William E. Even

William E. Even

Miami University; IZA Institute of Labor Economics

David A. MacPherson

Trinity University; IZA Institute of Labor Economics

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

Even, William E. and MacPherson, David A., Employer Size and Labor Turnover: The Role of Pensions. INDUSTRIAL AND LABOR RELATIONS REVIEW, July 1996, Available at SSRN: https://ssrn.com/abstract=3057

William E. Even

Miami University ( email )

208 Laws Hall
Oxford, OH 45056
United States
513-529-2865 (Phone)
513-529-6992 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

David A. MacPherson (Contact Author)

Trinity University ( email )

San Antonio, TX 78212
United States
210-999-8112 (Phone)
210-999-7255 (Fax)

HOME PAGE: http://www.davemacpherson.com

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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