Stayers as "Workers" and "Savers": Toward Reconciling the Pension-Quit Literature
The classic selection effect posits that deferred wages attract "stayers." The results in this paper suggest an alternative explanation. Deferred wage contracts attract "savers." All else constant, savers are better workers than nonsavers. A firm naturally works harder to retain better workers, and thus, is led to pay them higher wages; thereby encouraging savers to remain in the firm's employ. This process creates a confluence of deferred wages, high levels of compensation and low quit propensities. In this explanation, "staying" is merely the result of a selection process, and not the underlying factor that drives selection.
Year of publication: |
2002
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Authors: | Ippolito, Richard A. |
Published in: |
Journal of Human Resources. - University of Wisconsin Press. - Vol. 37.2002, 2
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Publisher: |
University of Wisconsin Press |
Saved in:
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