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Evidence indicates that eligibility to receive a pension benefit significantly affects the decision to leave the labor force. In addition, the type of pension coverage a worker has is important to this decision: workers with defined benefit (DB) plans are more likely to exit the labor force when they are eligible for benefits than are workers with defined contribution (DC) plans.1 Older workers are more likely to be covered by a DB plan than by a DC plan.2
The Survey of Income and Program Participation (SIPP)
This paper examines the pension and retirement plan coverage of workers approaching retirement; it uses data from the "Retirement Expectations and Pension Coverage" topical module (Wave 7) of the 1996 Survey of Income and Program Participation (SIPP) released by the U...
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Common topics in this essay:
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