TY - JOUR
AU - BIANCHI, CARLO
AB - Alternative pension schemes, and early retirement provisions inparticular, can produce different effects on retirement behavior,with significant economic consequences. This paper presents newevidence on the effect of different seniority pension reforms,considering the evolution of an agent-based economy in Italy, withheterogeneous workers whose retirement age depends on expectedlifetime incomes. Using dynamic aging methods, we examinebehavioral changes along proposed pension reform paths. Ourmodel — calibrated to replicate the main demographic andeconomic features and retirement dynamics of the Italianeconomy — is used to estimate the age of retirement, totalpension expenditures, pension benefits and the trend of inequalityand poverty among pensioners under different policy scenarios. Moreprecisely, we compare the current state of affairs (B)with a reform proposed by the Italian Welfare Minister(M) and with an early introduction of a mixed regimefor seniority pensions (A) according to two limiting"retirement behavioral rules." Under the individualrationality hypothesis, M produces slightly highersavings with minor redistributive effects; although it leads to anincrease in income concentration, M mitigates povertyproblems after 2008. The reform is more effective underfamily-bounded rationality, but it leads to permanent and moresignificant increases in income concentration and aggravates thediffusion and intensity of poverty.
TI - REFORMING THE ITALIAN PENSION SYSTEM IN THE XXI CENTURY: THE ISSUE OF SENIORITY PENSIONS ONCE AGAIN
JF - Advances in Complex Systems: A Multidisciplinary Journal
DO - 10.1142/S0219525904000111
DA - 2004-06-30
UR - https://www.deepdyve.com/lp/world-scientific-publishing-company/reforming-the-italian-pension-system-in-the-xxi-century-the-issue-of-epBy8PRK6q
SP - 241
EP - 264
VL - 7
IS - 02
DP - DeepDyve
ER -