Life Expectancy Heterogeneity and Pension Fairness: An Italian North-South Divide
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...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-03-01
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| Series: | Risks |
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| Online Access: | https://www.mdpi.com/2227-9091/9/3/57 |
| _version_ | 1797540920691785728 |
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| author | Fabrizio Culotta |
| author_facet | Fabrizio Culotta |
| author_sort | Fabrizio Culotta |
| collection | DOAJ |
| description | 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 <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mrow><mn>10</mn><mo>%</mo></mrow></semantics></math></inline-formula>. Differences by geography persist along the Italian territory. Since 1995 the macroarea of Mezzogiorno has been taxed by <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mrow><mn>2</mn><mo>%</mo></mrow></semantics></math></inline-formula>, Center and North-West macroareas are being subsidized by around <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mrow><mn>1</mn><mo>%</mo></mrow></semantics></math></inline-formula>, whereas North-East by <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mrow><mn>2</mn><mo>%</mo></mrow></semantics></math></inline-formula>. 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. |
| first_indexed | 2024-03-10T13:07:56Z |
| format | Article |
| id | doaj.art-98835f7bccb247d2b8aae57850a7f6b7 |
| institution | Directory Open Access Journal |
| issn | 2227-9091 |
| language | English |
| last_indexed | 2024-03-10T13:07:56Z |
| publishDate | 2021-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj.art-98835f7bccb247d2b8aae57850a7f6b72023-11-21T11:00:20ZengMDPI AGRisks2227-90912021-03-01935710.3390/risks9030057Life Expectancy Heterogeneity and Pension Fairness: An Italian North-South DivideFabrizio Culotta0Postdoctoral Research at the Department of Political Science, University of Genoa, 16124 Genoa, ItalyThis 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 <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mrow><mn>10</mn><mo>%</mo></mrow></semantics></math></inline-formula>. Differences by geography persist along the Italian territory. Since 1995 the macroarea of Mezzogiorno has been taxed by <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mrow><mn>2</mn><mo>%</mo></mrow></semantics></math></inline-formula>, Center and North-West macroareas are being subsidized by around <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mrow><mn>1</mn><mo>%</mo></mrow></semantics></math></inline-formula>, whereas North-East by <inline-formula><math xmlns="http://www.w3.org/1998/Math/MathML" display="inline"><semantics><mrow><mn>2</mn><mo>%</mo></mrow></semantics></math></inline-formula>. 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.https://www.mdpi.com/2227-9091/9/3/57longevity heterogeneitytax/subsidy mechanismpension systemsItalian economyregional divide |
| spellingShingle | Fabrizio Culotta Life Expectancy Heterogeneity and Pension Fairness: An Italian North-South Divide Risks longevity heterogeneity tax/subsidy mechanism pension systems Italian economy regional divide |
| title | Life Expectancy Heterogeneity and Pension Fairness: An Italian North-South Divide |
| title_full | Life Expectancy Heterogeneity and Pension Fairness: An Italian North-South Divide |
| title_fullStr | Life Expectancy Heterogeneity and Pension Fairness: An Italian North-South Divide |
| title_full_unstemmed | Life Expectancy Heterogeneity and Pension Fairness: An Italian North-South Divide |
| title_short | Life Expectancy Heterogeneity and Pension Fairness: An Italian North-South Divide |
| title_sort | life expectancy heterogeneity and pension fairness an italian north south divide |
| topic | longevity heterogeneity tax/subsidy mechanism pension systems Italian economy regional divide |
| url | https://www.mdpi.com/2227-9091/9/3/57 |
| work_keys_str_mv | AT fabrizioculotta lifeexpectancyheterogeneityandpensionfairnessanitaliannorthsouthdivide |