THE RETIREMENT BEHAVIOR OF WORKERS COVERED BY UNION AND NONUNION PENSION PLANS

Previous authors have noted that there are significant differences bet ween the provisions of union and nonunion pension plans. I present evi dence that sheds light on two hypotheses. The first (Parsons, 1983) po sits that union pensions should encourage earlier retirement because p roductivity falls as workers age, but union rules prohibit firms from lowering wages. The second (Freeman, 1985) argues that union pension p lans reflect the preferences of older more senior workers. I find some support for both hypotheses.