Evaluating Pension Portability Reforms: The Tax Reform Act of 1986 as a Natural Experiment

Vincenzo Andrietti and Vincent Hildebrand

Social and Economic Dimensions of an Aging Population Research Papers from McMaster University

Abstract: This paper uses the Tax Reform Act of 1986 as a natural experiment to evaluate the job mobility response of prime-aged US employees participating in employer sponsored defined benefit pension plans to a reduction in the vesting period for pension rights accrual. We apply difference-in-differences methods using data from the Survey of Income and Program Participation to estimate the treatment impact of this policy change. We find that on average the reform had no significant effects on voluntary job mobility of the treated group. Our findings are robust to the use of different control groups and difference-in-differences estimators.

Keywords: Labour mobility; employer-provided pension plans; vesting; program evaluation; propensity score matching (search for similar items in EconPapers)
JEL-codes: J24 J44 J62 J63 J68 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2006-09
New Economics Papers: this item is included in nep-pbe
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Related works:
Working Paper: Evaluating pension portability reforms. the tax reform act of 1986 as a natural experiment (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:mcm:sedapp:160

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