Pensions and job search: Survey evidence from unionized workers in canada

Research on the disincentives for quitting under employer-sponsored pension plans have limited generalizability as tests of the implicit contract thesis because of the way that job changing, pension back-loading, and plausible alternative explanations for pension effects have been operationalized. Using a unique data set that addresses some of these concerns, I find that pension back-loading and insecurity about the viability of a long-term employment contract are quantitatively the most significant determinants of job search intentions, followed by other seniority related benefits, such as vacation pay and shared investments in firm-specific training. No support for pension information, wage tilt, or efficiency wage arguments is found. Males and the better educated are also more likely to intend to search. Implications for theory, policy, and future research are discussed. I thank Morley Gunderson for helpful comments made on an earlier draft of this paper. Financial assistance from the Social Sciences and Humanities Research Council is gratefully acknowledged.