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The Italian Social Protection System: The Poverty of Welfare

Author

Listed:
  • Mr. Massimo V. Rostagno
  • Ms. Francesca Utili

Abstract

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.

Suggested Citation

  • Mr. Massimo V. Rostagno & Ms. Francesca Utili, 1998. "The Italian Social Protection System: The Poverty of Welfare," IMF Working Papers 1998/074, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1998/074
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    Citations

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    Cited by:

    1. Tito Boeri & Andrea Brandolini, 2004. "The Age of Discontent: Italian Households at the Beginning of the Decade," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 63(3-4), pages 449-487, December.
    2. Stanislaw Gomulka, 2000. "Pension Problems and Reforms in the Czech Republic, Hungary, Poland and Romania," CEP Discussion Papers dp0480, Centre for Economic Performance, LSE.
    3. Francesco Devicienti & Valentina Gualtieri, 2007. "The Dynamics and Persistence of Poverty: Evidence from Italy," LABORatorio R. Revelli Working Papers Series 63, LABORatorio R. Revelli, Centre for Employment Studies.
    4. Alesina, Alberto & Baqir, Reza & Easterly, William, 2000. "Redistributive Public Employment," Journal of Urban Economics, Elsevier, vol. 48(2), pages 219-241, September.

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