IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v34y1981i4p522-530.html
   My bibliography  Save this article

Scale Economies in Private Multi-Employer Pension Systems

Author

Listed:
  • Olivia S. Mitchell
  • Emily S. Andrews

Abstract

This paper examines the efficiency of pension plan operations in the private sector, focusing on the relationship between plan size and administrative expenses of pension fund management. The authors estimate cost equations for multi-employer, defined benefit plans with funds held totally by a trust, using data from a stratified sample of plan reports for 1975 filed with the U.S. Department of Labor. Equations are estimated for individual industries and for the private sector as a whole. In all cases economies of scale in plan administration are evident, suggesting that policymakers should investigate measures to encourage plan consolidation in the private sector and perhaps in the public sector as well.

Suggested Citation

  • Olivia S. Mitchell & Emily S. Andrews, 1981. "Scale Economies in Private Multi-Employer Pension Systems," ILR Review, Cornell University, ILR School, vol. 34(4), pages 522-530, July.
    • Handle: RePEc:sae:ilrrev:v:34:y:1981:i:4:p:522-530
    DOI: 10.1177/001979398103400403
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/001979398103400403
    Download Restriction: no
    File URL: https://libkey.io/10.1177/001979398103400403?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jacob Bikker & Jan de Dreu, 2006. "Pension fund efficiency: the impact of scale, governance and plan design," DNB Working Papers 109, Netherlands Central Bank, Research Department.
    2. Ali Fakih & Pascal Ghazalian, 2015. "Female employment in MENA’s manufacturing sector: the implications of firm-related and national factors," Economic Change and Restructuring, Springer, vol. 48(1), pages 37-69, February.
    3. Steven G. Allen & Robert L. Clark & Daniel A. Sumner, 1986. "Postretirement Adjustments of Pension Benefits," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 118-137.
    4. Helen Higgs & Andrew C. Worthington, 2010. "Economies of Scale and Scope in Australian Superannuation Funds," Discussion Papers in Finance finance:201015, Griffith University, Department of Accounting, Finance and Economics.
    5. Gustman, A.L. & Mitchell, O.S. & Steinmeier, T.L., 1993. "The Role of Pensions in the Labor Market," Papers 93-07, Cornell - Center for Advanced Human Resource Studies.
    6. Olivia S. Mitchell, 1998. "Administrative Costs in Public and Private Retirement Systems," NBER Chapters, in: Privatizing Social Security, pages 403-456, National Bureau of Economic Research, Inc.
    7. Luca Di Gialleonardo & Mauro Marè, 2015. "The efficiency of Italian pension funds: costs, membership, assets," Working papers 21, Società Italiana di Economia Pubblica.
    8. Jack E. Triplett, 1983. "Introduction: An Essay on Labor Cost," NBER Chapters, in: The Measurement of Labor Cost, pages 1-60, National Bureau of Economic Research, Inc.
    9. Alan L. Gustman & Olivia S. Mitchell, 1990. "Pensions and the U.S. Labor Market," NBER Working Papers 3331, National Bureau of Economic Research, Inc.
    10. Mario Bossler, 2015. "The efficiency wage effect of employer provided occupational pensions," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-17, December.
    11. Mitchell, Olivia S., 1993. "Publicpension governance and performance : lessons for developing countries," Policy Research Working Paper Series 1199, The World Bank.
    12. Di Gialleonardo, Luca & Mare, Mauro, 2016. "The efficiency of Italian pension funds: costs, membership, assets," MPRA Paper 76064, University Library of Munich, Germany, revised Aug 2016.
    13. J.A. Bikker, 2013. "Is there an optimal pension fund size? A scale-economy analysis of administrative and investment costs," Working Papers 13-06, Utrecht School of Economics.
    14. Sluchynsky, Oleksiy, 2015. "Defining, measuring, and benchmarking administrative expenditures of mandatory social security programs," Social Protection Discussion Papers and Notes 95198, The World Bank.
    15. Jacob A. Bikker, 2017. "Is THERE AN OPTIMAL PENSION FUND SIZE? A SCALE-ECONOMY ANALYSIS OF ADMINISTRATIVE COSTS," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 84(2), pages 739-769, June.
    16. James R. Cummings & David Gallagher, 2016. "Effect of fund size on the performance of Australian superannuation funds," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 56(3), pages 695-725, September.
    17. J.A. Bikker, 2013. "Is there an optimal pension fund size? A scale-economy analysis of administrative and investment costs," Working Papers 13-06, Utrecht School of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:34:y:1981:i:4:p:522-530. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.