Social Security Systems and the Distribution of Income: An Application to the Italian Case

CeRP Working Paper No. 8/01

34 Pages Posted: 26 Mar 2001

See all articles by Margherita Borella

Margherita Borella

University of Torino - Dipartimento di scienze economico-sociali e matematico-statistiche; CeRP - Collegio Carlo Alberto

Date Written: 2001

Abstract

This paper analyses the distribution of pensioners' income under different Social Security systems. The work focuses in particular on the recent reforms undertaken in the Italian Social Security system. Simulations, calibrated on Italian male dependent workers earnings histories, show that the new contribution-based scheme (after the reform in 1995) reduces inequality among all groups considered, i.e. private or public dependent workers of different education groups. The generalised Lorenz curve shows that for the overall population considered (one generation of retiring dependent workers) the (small) reduction in average benefit is compensated by the reduction in inequality, with the exception of the highest percentiles. However, within groups with a steeper age-earnings profile (high school and college graduates employed in the private sector) the generalised Lorenz curve associated with the contribution-based scheme is dominated by the distribution associated with the previous earnings-related scheme.

Suggested Citation

Borella, Margherita, Social Security Systems and the Distribution of Income: An Application to the Italian Case (2001). CeRP Working Paper No. 8/01. Available at SSRN: https://ssrn.com/abstract=264510 or http://dx.doi.org/10.2139/ssrn.264510

Margherita Borella (Contact Author)

University of Torino - Dipartimento di scienze economico-sociali e matematico-statistiche ( email )

C. so Unione Sovietica, 218 Bis
Torino, 13820-4020
Italy

HOME PAGE: http://https://sites.google.com/site/margheritaborella/

CeRP - Collegio Carlo Alberto

Via Real Collegio, 30
Moncalieri, Turin
Italy
+39 011 647 6525 (Phone)
+39 011 640 3680 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
66
Abstract Views
588
rank
342,335
PlumX Metrics