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The lifetime gender gap in Italy. Does the pension system countervail labour market outcomes?

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  • Leombruni Roberto

    ()

  • Mosca Michele

    ()
    (University of Turin)

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    Abstract

    In Italy large work career gender gaps currently ex ist, particularly regarding wages and activity rates. This paper investigates the issue looking at lifetime incomes, where from the one side all the career gaps are sum med up, from the other the redistribution acted by the pension system may mitigate the differences. Exploiting an original database on entire work careers, we document how the pay gap constantly widens with age and how women tend to cumulate a lower number of eligible working years. Both gaps have an impact on the pension calculation, so that at retirement gender differences are even higher. By means of a microsimulation model we show that the pension system partially countervails labour market outcomes, implying lower differences in lifetime in comes. However, due to the current transition to an actuarially neutral system, the effect will vanish, posing some concerns about the future prospects of gender income inequality

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    Bibliographic Info

    Paper provided by University of Turin in its series Department of Economics and Statistics Cognetti de Martiis. Working Papers with number 201302.

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    Length: 26 pages
    Date of creation: Jan 2013
    Date of revision:
    Handle: RePEc:uto:dipeco:201302

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    17. Michele Belloni & Carlo Maccheroni, 2013. "Actuarial Fairness When Longevity Increases: An Evaluation of the Italian Pension System," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan, vol. 38(4), pages 638-674, October.
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