In this provocative book, Richard A. Ippolito explores the relation between employees' preferences for certain types of pension plans and their productivity. He begins by reviewing how pensions influence workers' behavior on the job, helping employers reduce early quit rates and increase early retirement. In a novel contribution, Ippolito then shows how pensions can assist employers in attracting and retaining workers who have personal attributes valued by the firm.

Challenging the accepted view of defined contribution plans, such as the 401k, as merely convenient tax-deferred savings plans, Ippolito argues that these plans can help firms select and pay the best workers without expending resources on monitoring. Building on his proposals for managing private pension plans, Ippolito concludes with a blueprint for fixing the social security system that would enhance incentives to work and save while at the same time improving the system's financial condition.

Ippolito's carefully documented analysis will benefit professional pension managers and economists interested in labor and aging policy, as well as businesspeople and policymakers concerned with human resource administration and retirement policy.