Pensions as Psychological Contracts: Implications for Work Outcomes

Abstract

Drawing on psychological contract theory, we develop predictions regarding the moderating influence of the meaning employees assign to their marginal quit costs, as well as on the role of stayer perceptions and saver effects, on various work outcomes under a defined‐benefit pension. Results show pension incentives can have favorable or unfavorable effects depending on whether employees perceive them as supportive relational contracts or as low‐trust transactional contracts. Implications for research and policy are discussed.

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