IDEAS home Printed from
   My bibliography  Save this article

Dalla ripartizione alla capitalizzazione: una transizione possibile per il sistema pensionistico italiano? Risposta al Commento di Cesaratto


  • Lorenzo Forni
  • Raffaella Giordano


In our paper we explore the feasibility, in terms of the budget, of reducing the contribution rates to the pay-as-you-go pension system (in particular for newly-hired workers), while using the severance payment contributions to create a second fully-funded pension pillar able to provide supplementary coverage. We show that the cost to the budget of such a transition would be substantially reduced if the payroll tax reduction had positive effects on employment. The proposal can be criticized on at least two grounds: 1) it could have a redistributive effect in favor of employers; 2) if the transition has no effect on employment, it would increase public debt. In the response we argue that: 1) the redistributive effects of the payroll tax cut will depend on the overall conditions of the labor market (that is, on the elasticity of the demand for and the supply of labor) and on the way the payroll tax cut is financed; therefore, our proposal is in principle compatible with all (or zero) redistributive effects; 2) the payroll tax cut is in fact likely to increase the demand for and the supply of labor; otherwise "prima facie" the proposed reform would not have any macroeconomic effect. Against these potential limits, the proposal has two clear advantages: 1) a mixed system allows some risk diversification (demographic shocks, which affect the rate of return of a PAYG system, are scarcely correlated with the interest rate shocks to which a fully funded system is vulnerable) and it is less prone to financial imbalances; 2) a payroll tax reduction will reduce the amount of mandatory saving, thus unavoidably increasing (or not decreasing) consumer welfare.

Suggested Citation

  • Lorenzo Forni & Raffaella Giordano, 2001. "Dalla ripartizione alla capitalizzazione: una transizione possibile per il sistema pensionistico italiano? Risposta al Commento di Cesaratto," Politica economica, Società editrice il Mulino, issue 3, pages 367-370.
  • Handle: RePEc:mul:je8794:doi:10.1429/1580:y:2001:i:3:p:367-370

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers

    File URL:
    Download Restriction: no

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:je8794:doi:10.1429/1580:y:2001:i:3:p:367-370. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.