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Teachers' Willingness To Pay For Retirement Benefits: A National Stated Preferences Experiment, Dillon Fuchsman, Josh B. Mcgee, Gema Zamarro

Education Reform Faculty and Graduate Students Publications

Many states have recently made or are considering changes to their teacher retirement systems. However, little is known about how teachers value various elements of their retirement benefits versus other aspects of their jobs and compensation. To help alleviate this gap, we use a discrete choice stated preferences experiment embedded in a nationally representative survey of teachers to estimate their willingness-to-pay for various retirement plan characteristics and other non-salary job components. We find that teachers would be indifferent between a traditional pension and alternative retirement plan designs if the alternatives were paired with 2 to 3 percent salary increases. Our …