Estimating Implicit Value of Job Quality

Using “stated preferences” instead of “revealed preferences”, this article proposes an estimate of implicit value of job quality for older workers. The method rests on the fact that those occupying bad jobs are not ready to postpone their retirement, unless they are offered a substantially higher pension. Job quality is then valuated as financial counterpart –in terms of increased amount of pension– of work disutility. We take advantage of a original database from a survey on a sample of employees aged 54 years or over working in private sector. They are asked about their retirement expectations and invited to react to a number of retirement scenarios involving a trade-off between leisure and income. Their answers make it possible to estimate an implicit value which shows that the effect of job quality on retirement expectations is quite sizeable. Classification JEL: J26, J81, C9