Does Homeownership Partly Explain Low Participation in Supplementary Pension Schemes?

28 Pages Posted: 29 Aug 2015

See all articles by Marco Santantonio

Marco Santantonio

University of Bergamo

Costanza Torricelli

University of Modena and Reggio Emilia - Department of Economics; Università degli studi di Modena e Reggio Emilia (UNIMORE) - Center for Research in Banking and Finance (CEFIN); Center for Research on Pensions and Welfare Policies (CeRP)

Maria Cesira Urzí Brancati

CeRP; JRC-Seville

Multiple version iconThere are 2 versions of this paper

Date Written: September 9, 2014

Abstract

We used nine waves of the Bank of Italy’s Survey on Household income and Wealth (1995-2012) to investigate a possible trade-off between homeownership and individual participation in a supplementary pension scheme. Italy lends itself to this type of investigation because the Italian public pension system has been heavily reformed in the period, providing in principle incentives for participation, and the homeownership rate is very high. The impact of homeownership is captured in two ways: by a dummy for being homeowner and by an index defined as the share of housing wealth over total wealth. Our results show that indeed, after controlling for a vast array of socio-economic characteristics and allowing for unobserved individual heterogeneity, both measures of homeownership are negatively associated with participation in supplementary pension schemes and that such an effect does not disappear even after the 2007 reform.

Keywords: pension plan participation, retirement planning, housing investment

JEL Classification: D91, H55

Suggested Citation

Santantonio, Marco and Torricelli, Costanza and Urzí Brancati, Maria Cesira, Does Homeownership Partly Explain Low Participation in Supplementary Pension Schemes? (September 9, 2014). Available at SSRN: https://ssrn.com/abstract=2652658 or http://dx.doi.org/10.2139/ssrn.2652658

Marco Santantonio

University of Bergamo ( email )

Via Salvecchio, 19
Bergamo, 24129
Italy

Costanza Torricelli (Contact Author)

University of Modena and Reggio Emilia - Department of Economics ( email )

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41100 Modena, Modena 41100
Italy
+390592056733 (Phone)
+390592056937 (Fax)

HOME PAGE: http://www.economia.unimore.it/torricelli_costanza/index.htm

Università degli studi di Modena e Reggio Emilia (UNIMORE) - Center for Research in Banking and Finance (CEFIN) ( email )

via Berengario 51
Modena, modena I-41100
Italy

Center for Research on Pensions and Welfare Policies (CeRP) ( email )

Via Real Collegio, 30
Moncalieri, Turin 10024
Italy

Maria Cesira Urzí Brancati

CeRP ( email )

via Real Collegio 30
Moncalieri, Torino 10024
Italy

JRC-Seville ( email )

Calle inca garcilaso 3
Seville, 41092
Spain

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