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An Empirical Assessment of the Italian Severance Payment

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Author Info
Carolina Fugazza () (Center for Research on Pensions and Welfare Policies, Turin)
Federica Teppa () (DCenter for Research on Pensions and Welfare Policies, Turin)

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Abstract

The Italian TFR ("Trattamento di fine Rapporto") is a statutory payment made by firms to staff on separation. Recent reforms of the national pension system are based on voluntary transfers of the TFR to a supplementary pension fund. The purpose of this paper is to provide a probabilistic distribution of how workers currently make use of their severance payment, on the basis of their demographic and occupational characteristics. We find that the TFR mainly acts both as a buffer stock and as an income source upon retirement.

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File URL: http://cerp.unito.it/index.php/en/publications/working-papers/124-an-empirical-assessment-of-the-italian-severance-payment
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File Format: application/pdf
File Function: First version, 2005
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Publisher Info
Paper provided by Center for Research on Pensions and Welfare Policies, Turin (Italy) in its series CeRP Working Papers with number 38.

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Length: 43 pages
Date of creation: Feb 2005
Date of revision:
Handle: RePEc:crp:wpaper:38

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Related research
Keywords: Severance pay; retirement saving; pension schemes;

Find related papers by JEL classification:
D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving

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Cited by:
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  1. Riccardo Calcagno & Roman Kraeussl & Chiara Monticone, 2008. "An Analysis of the Effects of the Severance Payment Reform on Credit to Italian SMEs," Tinbergen Institute Discussion Papers 08-107/2, Tinbergen Institute. [Downloadable!]
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