Using a large new data set we present results from the first econometric study of the effects of pensions on firm performance in Germany. We find evidence for positive effects on wages, reduction of labor trunover, training, and profits.

Occupational pensions are major participants in global financial markets with assets of well over $30 trillion, representing more than 40% of the assets of institutional investors. Some occupational pension funds control assets of over $400 billion, and the largest 300 occupational pension funds...