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.
Authors
Orazio Attanasio
CPP Co-Director
Orazio is an International Research Fellow at the IFS, a Professor at Yale and a Research Associate at the National Bureau of Economic Research.
Agar Brugiavini
Research Fellow Ca' Foscari University of Venice
Agar is a Research Fellow of the IFS and a Professor in the Department of Economics at the University of Venice,
Journal article details
- Publisher
- MIT Press
- Issue
- March 2003
Suggested citation
Attanasio, O and Brugiavini, A. (2003). 'Social security and households' saving' (2003)
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