Michele Pellizzari (University of Geneva)

Pension Rules and Wage Schedules Within the Firm

Abstract: We develop and validate empirically a simple model of long term employment relationships in the presence of pension benefits computed as a function of late earnings. The calibrated model allows us to compute the additional pension benefits generated by manipulation of the age-wage profile and how it is shared between workers and employers.

Joint work with Giuseppe Dachille, Giacomo De Giorgi, Luigi Pistaferri.