Pensions and indenture premia

摘要: The implicit pension contract has provided a theoretical basis for the observed relation between pensions, less quitting and earlier retirement. But it also encountered difficulty explaining why wages seem "too high" in firms. This anomaly been taken by some to imply that efficiency wages, not capital losses, explain is abnormally low defined benefit pensions. In this paper, I pursue an alternative explanation, model oversimplified because ignores supply conditions facing long-tenure show once allowance made compensation required workers entering long-term labor contracts, numerous anomalous empirical observations market are explicable.