Quarterly Journal of Economics Vol. 118 No. 3 2003
Social Security and Households' Saving
Abstract
This paper provides new evidence on the substitutability between private and pension wealth by exploiting the Italian pension reform of 1992. We use a difference-in-difference estimator that exploits the differential effects of the reform on individuals belonging to several year-of-birth cohorts and different occupational groups. We find convincing evidence that saving rates increase as a result of a reduction in pension wealth. By allowing for the possibility that substitutability changes with age, we find that substitutability is particularly high (and precisely estimated) for workers between 35 and 45.
- DOI
- 10.1162/00335530360698504
- Volume
- 118
- Issue
- 3
- Pages
- 1075-1119
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref