The Italian Social Protection System: The Poverty of Welfare

Author/Editor:

Massimo V. Rostagno ; Francesca Utili

Publication Date:

May 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Italy’s system of social protection has come under criticism for being fragmented and excessively skewed toward pensioners and “insiders.” After setting up a consolidated presentation of the social security accounts, this paper provides an empirical assessment of the effectiveness of the welfare system, relying on a survey of households’ incomes and wealth. It concludes that, owing to ill-designed targeting mechanisms, less than a quarter of total spending on the welfare instruments under review accrues to families whose own resources fall short of the poverty line. The paper then proposes a new means-testing formula.

Series:

Working Paper No. 1998/074

Subject:

Aging Expenditure Income Labor National accounts Pension spending Pensions Personal income Population and demographics

English

Publication Date:

May 1, 1998

ISBN/ISSN:

9781451849561/1018-5941

Stock No:

WPIEA0741998

Pages:

50

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