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The Dynamics of the Gender Gap at Retirement in Italy: Evidence from SHARE

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  • ABATEMARCO, Antonio

    (Department of Economics and Statistics and CELPE, University of Salerno - Italy)

  • RUSSOLILLO, Maria

    (Department of Economics and Statistics, University of Salerno and Bayes Business School - City (formerly CASS), University of London - UK)

Abstract

We investigate the dynamics of the gender gap at retirement in Italy -- by cohort and year of retirement -- for individuals retiring from 1980 to 2027 using data from SHARELIFE (Wave 7). Most importantly, we disentangle the opposite effects on the gender gap originating respectively from (i) improving labor market conditions for women from the sixties, and (ii) increasing actuarial fairness of the pension plan due to the progressive transition from a defined-benefit to a notional defined-contribution scheme. To capture the impact of these two driving forces, we implement a counterfactual analysis by which the gender gap at retirement -- in terms of gender gap in pension (GGP) and between-group inequality (GE) -- is measured both in the actual and in the virtual distribution of pension benefits, with the latter being obtained under the hypothesis of an actuarially fair pension scheme. We observe a U-shaped pattern since the actual gender gap at retirement is found to be decreasing up to 2020 but increasing after this date. Specifically, the increasing pattern for the gender gap at retirement after 2020 is shown to be driven by (i) the loss of redistributive power of the pension scheme, and (ii) women's penalization in the pro-rata mechanism due to lower contributions paid in the early working life.

Suggested Citation

  • ABATEMARCO, Antonio & RUSSOLILLO, Maria, 2021. "The Dynamics of the Gender Gap at Retirement in Italy: Evidence from SHARE," CELPE Discussion Papers 163, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    • Handle: RePEc:sal:celpdp:0163
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    2. Antonio Abatemarco & Elena Lagomarsino & Maria Russolillo, 2023. "Gender Pension Gap in EU Countries: A Between-Group Inequality Approach," Risks, MDPI, vol. 11(3), pages 1-15, March.

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    More about this item

    Keywords

    gender gap; pension; redistribution; actuarial fairness;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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