Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/258146 
Year of Publication: 
2021
Citation: 
[Journal:] Risks [ISSN:] 2227-9091 [Volume:] 9 [Issue:] 3 [Article No.:] 57 [Publisher:] MDPI [Place:] Basel [Year:] 2021 [Pages:] 1-22
Publisher: 
MDPI, Basel
Abstract: 
This work documents a persistent life expectancy heterogeneity by gender and geography in Italy during the period 1995-2019. Based on deviations of life expectancy at age 65, it quantifies the implicit tax/subsidy mechanism triggered when pensions annuities are computed by adopting the same value of longevity for the whole population. The intensity of this transfer mechanism is then measured and projected over the decade 2020-2030. Results show that females are subsidized while males are taxed by around 10%. Differences by geography persist along the Italian territory. Since 1995 the macroarea of Mezzogiorno has been taxed by 2%, Center and North-West macroareas are being subsidized by around 1%, whereas North-East by 2%. The intensity of the mechanism, despite decreases over time, is higher among females since the year 2000. From a geographical perspective, the macroarea of Mezzogiorno shows the lowest intensity, but also the lowest reduction as compared to other macroareas. Projections indicate that the North-South divide in this implicit transfer mechanism will persist over the next decade.
Subjects: 
Italian economy
longevity heterogeneity
pension systems
regional divide
tax/subsidy mechanism
JEL: 
H55
J14
J17
J18
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
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