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Eliciting Individual Preferences for Pension Reform

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  • Abid Fourati, Yosr

    (National University of Ireland, Galway)

  • O'Donoghue, Cathal

    (National University of Ireland, Galway)

Abstract

Pension systems have recently been under scrutiny because of the expected population ageing threatening its sustainability. This paper's contribution to the debate is from a political economic perspective as it uses data from a choice experiment to investigate individual preferences for an alternative state pension scheme based around preferences for cost, poverty, retirement age and pension parameters. Answers are used to estimate a lifecycle utility model of preferences towards pensions' parameters. Results suggest that individuals’ value orientation is an important determinant of their preferences. Respondents' income determines which degree of redistribution is preferred. However, preferences according to age are in contradiction with what is suggested in theory.

Suggested Citation

  • Abid Fourati, Yosr & O'Donoghue, Cathal, 2009. "Eliciting Individual Preferences for Pension Reform," IZA Discussion Papers 4479, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4479
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    References listed on IDEAS

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    Cited by:

    1. Pfarr Christian & Ulrich Volker, 2011. "Discrete-Choice-Experimente zur Ermittlung der Präferenzen für Umverteilung," Review of Economics, De Gruyter, vol. 62(3), pages 232-262, December.

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    More about this item

    Keywords

    redistribution; pension system reform; population ageing; stated preferences;
    All these keywords.

    JEL classification:

    • H0 - Public Economics - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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