Welfare Effects of Social Security Reforms Across Europe: The Case of France and Italy
AbstractThis paper uses a calibrated life cycle model to quantify the distributional effects of Social Security reforms. The authors focus on two countries, Italy and France, because they adopted two different strategies to cope with aging. While France marginally modified its defined benefit pension plan, Italy switched from a defined benefit pension plan to a contributive system. They find both reforms redistribute welfare unevenly: high skilled workers are the primary winners of the French reform and self employed individuals, especially unskilled workers, are the losers under the new Italian Social Security arrangement. Finally, they estimate that the French reform only finances 20% of the expected deficit. This is in sharp contrast with the Italian reform which finances the expected deficit by cutting drastically the generosity of Social Security benefits.
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Bibliographic InfoPaper provided by RAND Corporation Publications Department in its series Working Papers with number 437.
Length: 44 pages
Date of creation: Oct 2006
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- Raquel Fonseca & Theptida Sopraseuth, 2005. "Welfare Effects of Social Security Reforms across Europe: the Case of France and Italy," Documents de recherche 05-08, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
- Raquel Fonseca & Thepthida Sopraseuth, 2005. "Welfare Effects of Social Security Reforms Across Europe : the Case of France and Italy," CSEF Working Papers 138, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
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