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Social Security and Labour Supply: the Italian 1992 Reform as a Natural Experiment

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  • Ranzani, Marco

Abstract

This paper provides new evidence about the effects of economic incentives embedded in the Italian Social Security system on retirement decisions. The 1992 reform is an interesting example since it was implemented when: (a) the system was very generous to retirees; (b) the demographic context was dramatic;(c) an early retirement provision, and no actuarial fairness, distorted retirement choices. I use the reform as a natural experiment and exploit its differential effect on individuals belonging to different groups, namely blue- and white-collar workers. I find evidence that Social Security wealth has a larger impact on retirement choices compared to estimates in previous studies.

Suggested Citation

  • Ranzani, Marco, 2006. "Social Security and Labour Supply: the Italian 1992 Reform as a Natural Experiment," MPRA Paper 16569, University Library of Munich, Germany, revised Dec 2008.
    • Handle: RePEc:pra:mprapa:16569
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    References listed on IDEAS

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    Cited by:

    1. Marjan, MAES, 2008. "Financial and redistributive impact of reforming the old-age pension system in Belgium," Discussion Papers (ECON - Département des Sciences Economiques) 2008040, Université catholique de Louvain, Département des Sciences Economiques.
    2. Marjan, MAES, 2008. "Does the dismantlement of early retirement schemes increase unemployment in Belgium ?," Discussion Papers (ECON - Département des Sciences Economiques) 2008041, Université catholique de Louvain, Département des Sciences Economiques.

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    More about this item

    Keywords

    Social Security Wealth; Retirement; Natural Experiment.;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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