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

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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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  • 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.
  • Handle: RePEc:sef:csefwp:138
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    Cited by:

    1. Grech, Aaron George, 2012. "Evaluating the possible impact of pension reforms on future living standards in Europe," MPRA Paper 39851, University Library of Munich, Germany.
    2. Grech, Aaron George, 2014. "Evaluating the possible impact of pension reforms on elderly poverty in Europe," MPRA Paper 57639, University Library of Munich, Germany.
    3. Devis Geron, 2009. "Social Security Incidence under Uncertainty Assessing Italian Reforms," CESifo Working Paper Series 2812, CESifo Group Munich.
    4. repec:cep:sticas:/161 is not listed on IDEAS
    5. Díaz-Giménez, Javier & Díaz-Saavedra, Julián, 2006. "The Demographic and Educational Transitions and the Sustainability of the Spanish Public Pension System," MPRA Paper 69287, University Library of Munich, Germany.

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