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Welfare Effects of Social Security Reforms Across Europe : the Case of France and Italy

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Author Info
Raquel Fonseca () (CSEF, University of Salerno)
Thepthida Sopraseuth () (EPEE, University of Evry and CEPREMAP)

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Abstract

This paper uses a calibrated life cycle model to quantify the distributional effects of Social Security reforms. We focus only on two countries: Italy and France because they adopted two different strategies to cope with aging. While France marginally modified its defined pension plan, Italy switched from a defined pension plan to a contributive system. We find both reforms redistributes 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.

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Publisher Info
Paper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 138.

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Date of creation: 01 Apr 2005
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Handle: RePEc:sef:csefwp:138

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  4. D'Amato, Marcello & Galasso, Vincenzo, 2002. "Assessing the Political Sustainability of Parametric Social Security Reforms: The Case of Italy," CEPR Discussion Papers 3439, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Hansen, Gary D & Imrohoroglu, Ayse, 1992. "The Role of Unemployment Insurance in an Economy with Liquidity Constraints and Moral Hazard," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 118-42, February. [Downloadable!] (restricted)
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  6. Michael D. Hurd, 1993. "The Effect of Labor Market Rigidities on the Labor Force Behavior of Older Workers," NBER Working Papers 4462, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Hairault, Jean-Olivier & Langot, François & Sopraseuth, Thepthida, 2005. "A Quantitative Investigation of the Laffer Curve on the Continued Work Tax: The French Case," IZA Discussion Papers 1499, Institute for the Study of Labor (IZA). [Downloadable!]
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  8. Agar Brugiavini & Franco Peracchi, 2003. "Social Security Wealth and Retirement Decisions in Italy," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 17(SpecialIs), pages 79-114, 08. [Downloadable!] (restricted)
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  9. Mark Huggett & Gustavo Ventura, 1999. "On the Distributional Effects of Social Security Reform," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(3), pages 498-531, July. [Downloadable!] (restricted)
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  12. Ana Castaneda & Javier Diaz-Gimenez & Jose-Victor Rios-Rull, 2003. "Accounting for the U.S. Earnings and Wealth Inequality," Journal of Political Economy, University of Chicago Press, vol. 111(4), pages 818-857, August. [Downloadable!] (restricted)
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  16. Didier Blanchet & Louis-Paul Pele, 1997. "Social Security and Retirement in France," NBER Working Papers 6214, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  17. Guiso, Luigi & Jappelli, Tullio & Pistaferri, Luigi, 2002. "An Empirical Analysis of Earnings and Employment Risk," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(2), pages 241-53, April.
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  19. Margherita Borella, 2001. "Social Security Systems and the Distribution of Income: an Application to the Italian Case," CeRP Working Papers 08, Center for Research on Pensions and Welfare Policies, Turin (Italy). [Downloadable!]
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  21. Vincenzo Quadrini, 2000. "Entrepreneurship, Saving and Social Mobility," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(1), pages 1-40, January. [Downloadable!] (restricted)
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