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Title: The Impact of Human Capital Investments on Pension Benefits
Resulting in 1 citation.
1. Johnson, Richard W.
The Impact of Human Capital Investments on Pension Benefits
Journal of Labor Economics 14,3 (July 1996): 520-554.
Also: http://www.jstor.org/stable/2535365
Cohort(s): Older Men
Publisher: University of Chicago Press
Keyword(s): Benefits, Fringe; Human Capital; Modeling; Occupational Choice; Pensions; Social Security; Training, Occupational; Training, On-the-Job

This article develops a model, with deferred compensation and severance pay, that predicts that workers bear all the costs and receive all the returns of human capital investments and that specific investments yield higher returns than general investments. This model also predicts that pensions, which efficiently defer compensation, will be positively related to specific investments. Evidence from the National Longitudinal Survey of Older Men confirms these predictions; participation in company-sponsored training programs, proxying for specific investments, increases the probability of pension receipt and the level of benefits. More general training outside the firm has much smaller effects on pensions.
Bibliography Citation
Johnson, Richard W. "The Impact of Human Capital Investments on Pension Benefits." Journal of Labor Economics 14,3 (July 1996): 520-554.