In this paper we use that the theory of compensating differentials to identify sources of heterogeneity in firms' costs of providing fringe benefits and hence heterogeneity in the magnitude of the compensating differential. We estimate the relationship between pensions and wages controlling for...

This paper examines whether a trade-off exists between the level of pension benefits and wages. The 1983 Survey of Consumer Finance is used to match detailed information on pension plans to worker characteristics for a random sample of the population. The pension-wage tradeoff is estimated using...