Abstract
This study estimates individuals’ willingness to pay for pension benefits using a discrete choice experiment with fictitious job advertisements conducted among workers in the United Kingdom (UK). The results indicate that workers are willing to trade off current pay for additional pension benefits, with the average worker willing to forgo 0.3% of their current wage for a one percentage point increase in pension benefits. Willingness to pay varies significantly across individuals, increasing with proximity to retirement age, higher income levels and risk aversion.
| Original language | English |
|---|---|
| Article number | 102932 |
| Pages (from-to) | 1-11 |
| Number of pages | 11 |
| Journal | Labour Economics |
| Volume | 101 |
| Early online date | 1 Jul 2026 |
| DOIs | |
| Publication status | Published - Aug 2026 |
Data Availability Statement
The authors do not have permission to share data.Acknowledgements
We thank seminar and conference participants at the University of Antwerp, KU Leuven, AASLE/SOLE/EALE 2025 conference in Toronto and the 2025 Netspar Pension Day for valuable comments and discussions.Funding
We thank seminar and conference participants at the University of Antwerp, KU Leuven, AASLE/SOLE/EALE 2025 conference in Toronto and the 2025 Netspar Pension Day for valuable comments and discussions. Inés Guillemyn acknowledges funding for this research from the Research Foundation Flanders , grant number: 11D5225N .
| Funders | Funder number |
|---|---|
| Fonds Wetenschappelijk Onderzoek | 11D5225N |
Keywords
- Discrete choice experiment (DCE)
- United Kingdom
- Wage–pension trade-off
ASJC Scopus subject areas
- Economics and Econometrics
- Organizational Behavior and Human Resource Management
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